USDX (USD Index)
No movement outside of the triangle area on the U.S dollar index. It means traders will continue to observe the index reaction inside the triangle area for now. The index might continue its consolidation inside the triangle with a bullish bias.
News to watch
08.30 AM U.S Prelim GDP q/q, forecast increase of 2.0%
For full outlook for this week, you can follow Forex Outlook For The Week 26-30 August 2019
EUR/USD
Further bearish close saw on EUR/USD. The pair drifted lower for fourth days and might extend the bearish close. Traders will observe the pair reaction near the bottom trendline. A bullish reaction is not a confirmation to enter long-term positions. But, traders could use it to trade the triangle range before breakout happen.
today critical levels to watch:
Support: 1.1000
Resistance: 1.1100, 1.1120, 1.1185
GBP/USD
GBP/USD rejected from the bottom of the channel after the request of parliament suspension by UK Boris Johnson. The event suggested that current administration aiming for No-deal Brexit. If the request accepted then we might see GBP/USD tumble further lower. At the current time, short positions near the bottom of the channel could become an option with 1.2100 as a target.
Today Critical level to watch:
Support: 1.2100, 1.2000
Resistance: 1.2300, 1.2400
USD/JPY
USD/JPY extend its bullish move above 106.10 today. The pair has the potential to reach 106.70 – 107.00 in the short-medium-term. Traders might want to avoid long positions at the current level. Short positions are better taken near 106.70 – 107.00 when there are bearish reactions.
Today critical levels to watch:
Support: 106.10, 105.00, 104.67
Resistance: 106.70, 107.00
AUD/USD
The pair finally close outside of the blue box area. It is a bearish sign but the bull manages to reverse the bearish pressure today. At the current time, AUD/USD is testing the bottom of the blue box area. A close inside the blue box area will help the pair to continue upward and consolidate inside the blue box area.
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900