USDX (USD Index)
A triangle pattern formed on U.S dollar index and the index expected to trade inside it. Traders might want to wait before the breakout happen to place long-term positions. We expect the development of trade talks between U.S-China will become the trigger of the breakout.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 26-30 August 2019
EUR/USD
EUR/USD climbed above 1.1120 but immediately fell below it again in one day. The pair is traded inside a triangle pattern and might consolidate between the bottom of triangle and 1.1120 now. Traders could prepare for short positions when the pair reach 1.1120 or the top trendline. Long positions are riskier but still possible as long as traders place a hard stop below the previous swing low.
today critical levels to watch:
Support: 1.1100, 1.1000
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD closed lower in the previous trading day but stay inside Friday range. The pair currently move above previous day high and might close the day inside the channel. A closure inside the channel will set the top of the channel as next upside target.
Today Critical level to watch:
Support: 1.2100, 1.2000
Resistance: 1.2300, 1.2400
USD/JPY
USD/JPY bounced from 104.50 – 105.00 and closed near 106.10. The bullish reaction might be a strong one but the pair printed a lower low which means the bearish pressure has not receded yet. At the current time, USD/JPY is testing 106.10 resistance and waiting for a reaction. If the level is broken then we might see the pair head higher to test 106.70 – 107.00.
Today critical levels to watch:
Support: 105.00, 104.67
Resistance: 106.10, 106.70, 107.00
AUD/USD
AUD/USD closed inside the blue box again despite major sell-off yesterday. The pair projected to continue its movement inside the blue box and waiting for a breakout. We still think the bearish trend will continue and the pair eventually will close below the box. However, short positions are best taken near the top of the box.
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900