USDX (USD Index)

The upward movement of the U.S dollar index has no continuation today. It started to crumble and move lower. However, the index is not far from 97.50 resistance and might attempt to reach it soon. At the current time, the bearish correction might target the blue trendline and SMA 200 again.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 15-19 July 2019

Technical Analysis

EUR/USD

No lower low below previous week low which is a good situation for EUR/USD bull. The pair currently move upward and might erase half of the previous day loss. Even though there is an initial sign of bounce, traders might want to avoid placing long positions as the pair could weaken suddenly and reach 1.1185.

today critical levels to watch:

Support: 1.1200, 1.1180

Resistance: 1.1280, 1.1300, 1.1360, 1.1500

GBP/USD

The pair weakness brought it down to the bottom of the channel. Not much change to the bearish situation and currently there is a bounce from the bottom of the channel. The bounce might continue upward and target the top of the channel. But, it is better for traders to stick with short positions as UK fundamental situation on Brexit has not changed yet.

Today Critical level to watch:

Support: 1.2400

Resistance: 1.2500, 1.2625, 1.2800

USD/JPY

No clue on USD/JPY next direction yet. The pair is hanging at the middle of 107.40 – 109.00 range. Traders might want to enter position near the top of the bottom of range only.

Today critical levels to watch:

Support: 108.00, 107.40, 107.00

Resistance: 108.50, 109.00

AUD/USD

AUD/USD closed as a bearish engulfing pattern and there is bearish follow-through today. The pair fall toward 0.7000 and find support. At the current time, the pair has bounced and almost reach the middle of previous day range. Will the pair continue upward and reach SMA 200 before the end of the month?

Today critical levels to watch:

Support: 0.7000, 0.6900

Resistance: 0.7100