USDX (USD Index)
There was buying done by the bull on the previous day. Unfortunately, U.S dollar index could not close above 95.00 which suggest no breakout yet. The index might stall at the current level and fall to trade between 94.00 – 95.00. However, there is no confirmation yet which direction the index will take.
At the current time, watch reaction at 95.00 resistance before planning any position.
News to watch
04.30 AM UK Construction PMI, forecast reading of 52.6
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 July 2018
Technical Analysis
EUR/USD
EUR/USD hanging out near 1.1640 after the pair could not move higher above Friday high. The pair currently traded between 1.1580 – 1.1710 and might continue inside the range. Traders could use the top and bottom of the range to place position.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500
Resistance: 1.1650, 1.1710
GBP/USD
Monday trading session proved as low volatility day, but it is not the case for GBP/USD. The pair is moving in wild swing between 1.3094 – 1.3208 looking for direction. Initially, it fell below 1.3125 under strong trade fears sentiment. However, the pair manages to close above 1.3125. We expect the pair to trade between 1.3125 – 1.3250 with a bearish bias between two trendlines and target 1.3000.
Today critical level to watch:
Support: 1.3100, 1.3000
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY is showing more bullish pressure after the breakout above triangle pattern. However, the pair still needs to cross above 111.00 before the bullish sentiment confirmed. Currently, the pair expected to test 111.00 and headed to red trendline if breakout happen. On the other hand, rejection from 111.00 could lead to breakout below triangle pattern and start of the new bearish leg.
Today critical level to watch:
Support: 110.50, 110.00, 109.50
Resistance: 111.00
AUD/USD
Major bearish candlestick printed in the previous day. However, the bear could not close the pair below 0.7330 which mean the situation is neutral. As long as there is no close below 0.7330, AUD/USD has potential to bounce from the level.
Today critical level to watch:
Support: 0.7330, 0.7300
Resistance: 0.7400, 0.7500, 0.7550, 0.7600