USDX (USD Index)

There was upset in the market expectation yesterday. U.S dollar index proceeds higher and printed fresh yearly high despite the odds tilting to the bearish side. The Fed decided to cut interest-rate by 25 bps but provide an ambiguous clue on further rate-cut.

We expect the index to continue moving upward and reach 99.40 – 100.00 target area. On the other hand, if the index turns lower then traders could observe the are around 98.25 for a possible bounce.

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

The pair has lost the hope to reverse the current bearish trend after it fell below 1.1120 and print fresh yearly low. The pair continues its downward movement today and might reach 1.1100 soon. Traders might want to avoid long positions for now until the pair could print a bullish candlestick.

today critical levels to watch:

Support: 1.1100

Resistance: 1.1120, 1.1185, 1.1200, 1.1280

GBP/USD

GBP/USD bearish pressure has not receded yet. The pair reached the 1.2100 support level today and might continue its downward movement. Current situation fueled by strength in U.S dollar and Brexit uncertainties which put Pound sterling outlook looks murky. Traders might want to continue short and avoid long positions for short-medium-term.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2300, 1.2400

USD/JPY

USD/JPY rejected from 109.00 resistance today. The pair initially manage to climb above the resistance but immediately lost its upward momentum. If the pair maintain the price at the current level until the daily close then it will form a bearish pin bar pattern. A bearish close confirmation below the pattern in the coming day should trigger a continuation of the bearish trend in the pair.

Today critical levels to watch:

Support: 108.00, 107.40

Resistance: 108.50, 109.00, 110.00

AUD/USD

AUD/USD extends its bearish close to ninth days and there is nothing bullish at the moment. The pair could continue its bearish movement and traders better avoid long positions for now.

Today critical levels to watch:

Support: –

Resistance: 0.6900, 0.7000, 0.7100