USDX (USD Index)
U.S dollar index reversed in today trading after President Trump throws another punch to U.S allies. The President threatened to impose new tariff if allies decide to counter tariff. We might see U.S dollar index surpass 95.00 easily this week when responses or new tariff enacted.
Another major news is limitation will be applied for investment in U.S technology shares from China. Moreover, ban to sell U.S technology products to China also being prepared.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 June 2018
Technical Analysis
EUR/USD
1.1710 might be the highest level in EUR/USD the bull could travel this week. It is the highly expected rejection level and proven itself today. EUR/USD topped 1.1720 before turning down and almost fall below previous day low. It will be interesting to see the pair fall below previous day low.
Meanwhile, without any close below previous day low, EUR/USD could move between 1.1640 – 1.1710.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500
Resistance: 1.1650, 1.1710
GBP/USD
The bear is taking control today and pushed GBP/USD down below 1.3250. It is currently traded at 1.3200 and expected to resume the bearish trend toward 1.3000. Traders who hold short position could continue holding the position and move stop just above 1.3300.
Today critical level to watch:
Support: 1.3100, 1.3000
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
No close below the triangle pattern and sharp bounce happen today. USD/JPY direction is continued inside the triangle pattern until either side is broken. However, because of the strength of U.S dollar, we favor upside breakout. The bull needs to close the pair above daily SMA 200 first to open the way toward the top of the triangle.
Today critical level to watch:
Support: 110.00, 109.50, 109.00
Resistance: 110.50, 111.00
AUD/USD
The bullish momentum is losing power quickly before AUD/USD could touch 0.7450. It is a strong bearish situation and suggests the bear might attempt to break below 0.7330 and reach 0.7160 before any significant bounce. Traders might want to avoid placing long position under the current situation.
Today critical level to watch:
Support: 0.7330, 0.7300
Resistance: 0.7400, 0.7500, 0.7550, 0.7600