USDX (USD Index)

Major bearish reversal happened at the end of the previous week. U.S dollar index closed below 97.50 and risk further weakness this week. However, there is also a major change in the U.S-China trade talk situation. On Sunday, President Trump tweeted his intention to raise the tariff on $200b of Chinese imported goods this week from 10% to 25%. Aside from the $200b goods, there will be $325b more under threat for 25% tax.

Under the current situation, U.S dollar index gap up on Monday and find support at 97.50. We might see further strength from the index this week.

News to watch

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Technical Analysis

EUR/USD

EUR/USD tumbled below 1.1185 in the previous week but manage to reverse and closed the week above it. The pair holding out near the level at the start of this week despite the bearish pressure caused by U.S-China trade tension. Depend on the development of the trade talk, EUR/USD could move either upside or downside.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1200, 1.1300

GBP/USD

The bull has an upper hand after the launch from 1.3000 and closes above the bottom of channel & SMA 200. The pair ready to move further upside. But, the situation between U.S-China might hinder the pair from moving further upside. We have tariff deadline on Friday and fear might envelop the market.

Today Critical level to watch:

Support: 1.3125, 1.3000, 1.2800

Resistance: 1.3250

USD/JPY

USD/JPY under trouble at the beginning of this week as the pair drop toward 110.00. The bearish momentum is strong but the bull manages to make recovery. At the current time, the pair has recovered more than 50% of its daily losses.

We might see further weakness in USD/JPY as uncertainties mount in the market.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.50, 112.14, 112.50

AUD/USD

AUD/USD bounced at the end of the previous week but it stays inside Thursday candlestick range. The bounce is a technical bounce and currently, we see a fresh low printed on the chart below 0.7000. No reason to switch to the long side yet. The pair might continue under big volatility as U.S-China renewed concern on the trade war.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200