USDX (USD Index)

The pressure on U.S dollar index could not produce a close below 98.25 yesterday. Moreover, the index manages to close above 98.25 resistance level and open the possibility to continue higher. However, the market might wait until tomorrow Jerome Powell speech before deciding next U.S dollar index direction.

At the current time, we expect the index to close near 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 rejected from 1.1120 resistance today and gain more bearish momentum below previous day low. We might see a bearish continuation to challenge August 1st candlestick low. Traders might want to avoid placing long positions for now and look for short positions when there is an upward correction.

today critical levels to watch:

Support: 1.1000

Resistance: 1.1100, 1.1120, 1.1185

GBP/USD

GBP/USD stick near 1.2100 support level and show not much reaction. The pair might continue its sideways trend near the 1.2100 support level while waiting for a trigger to move. On the upside, traders could enter short positions when a test on the channel produces bearish reactions.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2300, 1.2400

USD/JPY

USD/JPY continue its ranging movement between 106.10 – 106.70 without any indication of a breakout yet. Traders could continue to apply ranging strategies under the current situation while waiting for a breakout.

Today critical levels to watch:

Support: 106.10, 105.00, 104.67

Resistance: 106.70, 107.00

AUD/USD

No change to the AUD/USD outlook which trades inside the blue box area. As long as the pair stay inside the blue box area, traders could use ranging strategies. Will the pair breakout by the end of the week?

Today critical levels to watch:

Support: 0.6700

Resistance: 0.6800, 0.6900