USDX (USD Index)

U.S dollar index started a rally from 97.50 support level and manage to reach 98.25 resistance level at the end of the previous week. The index formed a bearish pin bar pattern which suggests possible rejection from the resistance level. If the index starts moving lower then it will target 97.50 and continue ranging movement between 97.50 – 98.25.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 19-23 August 2019

EUR/USD

EUR/USD hope to return to the bullish trend has diminished as the pair fell below 1.1120. The pair might continue its bearish trend and target 1.1000. At the current time, it is possible the pair will reverse and test 1.1120 before continuing its downward movement.

today critical levels to watch:

Support: 1.1000

Resistance: 1.1100, 1.1120, 1.1185

GBP/USD

GBP/USD movement limited inside 1.2000 – 1.2100 in the previous week but the pair manage to close above 1.2100 by the end of the week. The short-term trend turned bullish but traders might prefer to stick with bearish positions to bullish positions. We have the channel as an upside target for now.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2300, 1.2400

USD/JPY

USD/JPY formed a triangle consolidation and settle between 106.10 – 106.70. The pair is directionless and expected to continue its consolidation inside the range. Traders will continue to observe the price movement at the current time.

Today critical levels to watch:

Support: 106.10, 105.00, 104.67

Resistance: 106.70, 107.00

AUD/USD

No movement outside of the blue box range yet. The pair traded sideways and expected to extend its ranging movement inside the blue box. Traders could continue to apply ranging strategies with a bearish bias for now.

Today critical levels to watch:

Support: 0.6700

Resistance: 0.6800, 0.6900