USDX (USD Index)
U.S dollar index has not left the triangle consolidation yet. It means the index will continue its ranging movement. At the current time, the index getting near the top of the range and ready to test it and 98.25 resistance. Which side the index will break out to?
News to watch
10.30 AM U.S Crude Oil Inventories, forecast deficit of 2.8 million barrels
For full outlook for this week, you can follow Forex Outlook For The Week 26-30 August 2019
EUR/USD
Similar to the situation of the U.S dollar index, EUR/USD is in a triangle consolidation. The pair recently closed below 1.1120 and risk further downside. Traders will observe the pair reaction at the bottom of the triangle and enter long positions with 1.1120 as the target.
today critical levels to watch:
Support: 1.1000
Resistance: 1.1100, 1.1120, 1.1185
GBP/USD
GBP/USD turned lower today after UK Boris Johnson request the Queen to suspend parliament. The suspension of parliament before Brexit might limit the ability of parliament to produce laws to hinder Brexit without deals. A bearish reaction after the news brought the pair lower below previous day low. However, we could see recovery is in progress and GBP/USD traded near the previous day low. We think it is possible the pair will continue its bearish movement toward 1.2000 – 1.2100.
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 area brought the pair to close near 106.10. There was no follow-through by the bull yet and the pair closed lower yesterday. Without any bullish close above 106.10 then the pair expected to start moving lower and target 104.50 – 105.00 again.
Today critical levels to watch:
Support: 105.00, 104.67
Resistance: 106.10, 106.70, 107.00
AUD/USD
Blue box consolidation is the keyword for the current AUD/USD movement. No change to the situation yet and the pair expected to continue its consolidation. Traders could start looking for long positions in the short-term time frame but be careful as the high gets lower each day. The safer option is short positions when there is a bullish correction.
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900