USDX (USD Index)
The bull resumes the upward movement after reversing the correction in the previous day before it could reach 94.00. We could expect the bullish move to break 95.00 resistance this time, and the index resumes long-term bullish trend. It is not the time to take a short position. However, rejection from 95.00 could lead to ranging inside 94.00 – 95.00.
News to watch
05.30 AM UK BOE Gov Carney Speaks
08.30 AM U.S Core Durable Goods Orders m/m. forecast increase of 0.5%
10.30 AM U.S Crude Oil Inventories, estimate a deficit of 2.4 million barrels
For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 June 2018
Technical Analysis
EUR/USD
EUR/USD is holding out near 1.1640 in Asian and European trading session. No conclusion yet on the next movement, however, we think the pair will continue moving lower following the strength in U.S dollar index. Next target of the downward movement is 1.1500 – 1.1580 area.
Failure to close below previous day low will lead EUR/USD to trade sideways between 1.1640 – 1.1710.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500
Resistance: 1.1650, 1.1710
GBP/USD
GBP/USD on track lower to 1.3000 after the rejection from 1.3300 – 1.3330 area. Traders could continue holding short position and do nothing at the current time. Stop order could be placed just above 1.3300 or 1.3330.
Today critical level to watch:
Support: 1.3100, 1.3000
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
Bounce at the bottom of triangle happened in USD/JPY, and the pair reaches SMA 200 before turning down. Currently, the pair is testing the bottom triangle again. Will the bear manage to make USD/JPY breakout lower? On the downside, 109.00 is the initial target if breakout happens.
Today critical level to watch:
Support: 109.50, 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
AUD/USD fall to four days low and currently testing the recent bullish candlestick low. The pair needs to close below the candlestick low to continue its bearish trend. On the lower side, 0.7160 is the target for current bearish leg.
Today critical level to watch:
Support: 0.7330, 0.7300
Resistance: 0.7400, 0.7500, 0.7550, 0.7600