USDX (USD Index)

U.S dollar index continues its consolidation near 98.25 resistance level before the Fed Jerome Powell speech. At the current time, there is no clue on the index next direction. Traders will continue to observe the index reaction near 98.25 for now.

Meanwhile, China slapped a tariff on additional $75b U.S imported goods. The tariff will take effect on September 1, and December 15. It means the trade war will continue for an indefinite time.

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 printed lower low on the daily chart and will confirm the continuation of the bearish trend with a strong bearish close. At the current time, there is a chance for the pair to reverse current bearish pressure and return above its opening level. A close above opening level or above previous day low should prevent further weakness in the coming week.

today critical levels to watch:

Support: 1.1000

Resistance: 1.1100, 1.1120, 1.1185

GBP/USD

The bounce from 1.2100 support level brought GBP/USD up and close near the bottom of the channel. The pair might consolidate or experience rejection near the bottom of the channel. But, at the current time, there is no sign of rejection and it is possible the pair could extend current bullish movement inside the channel.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2300, 1.2400

USD/JPY

The ongoing consolidation of USD/JPY soon will reach an end. The pair form a triangle pattern and getting ready for a breakout. Which side will the pair breakout to? Will it break above 107.00 or below 106.10?

A bearish close below 106.10 will trigger further sell-off toward 105.00.

Today critical levels to watch:

Support: 106.10, 105.00, 104.67

Resistance: 106.70, 107.00

AUD/USD

AUD/USD aiming for a bearish breakout from the blue box area. At the current time, the pair is testing the bottom of the channel. Short positions at the current level might not be the best options traders could take. Long positions are a better choice assuming the pair could return inside the box area by the end of the day.

Today critical levels to watch:

Support: 0.6700

Resistance: 0.6800, 0.6900