USDX (USD Index)

The path of U.S dollar index continues pointed upward and it seems no stop yet despite the looming the Fed interest-rate decision. We think the index will pause before the interest-rate announcement. Traders might want to avoid taking a long-term position for now.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 29-2 August 2019

Technical Analysis

EUR/USD

EUR/USD under bearish pressure today and testing 1.1120 support level. In the previous week, the pair traded wildly inside 1.1120 – 1.1185 range but could not break out of the range. This week, we might see the pair continue its ranging movement until the Fed interest-rate decision.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1280, 1.1300

GBP/USD

GBP/USD resume its bearish trend and fall below the bottom of the channel. It is not an indication to take short positions. On the other hand, long positions are risky as the overall trend is bearish. Traders might want to look for short positions only when the pair making upward correction toward the top of the channel.

Today Critical level to watch:

Support: 1.2300

Resistance: 1.2400, 1.2500, 1.2625, 1.2800

USD/JPY

USD/JPY traded lower at the beginning of today trading session. However, the pair reverse and currently traded above its opening level. If the upward pressure continues then we might see the pair testing 109.00 resistance before FOMC meeting.

Today critical levels to watch:

Support: 108.50, 108.00, 107.40

Resistance: 109.00

AUD/USD

The direction is downward and there is no change to the situation yet in AUD/USD. Without any change of direction then AUD/USD expected to continue lower and target the bottom of the channel. Meanwhile, traders better stay sideline and enter short positions only when upward correction happen.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000, 0.7100