USDX (USD Index)

U.S dollar index might experience further weakness this week after the U.S and China enter new negotiation to settle trade war. At the end of the week, both parties do cease-fire and President Trump will allow U.S companies to sell products to Huawei though the company will continue in the blacklist.

At the moment, the index supported by 96.10. A breakout and close below the support level should trigger further selling.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 1-5 July 2019

Technical Analysis

EUR/USD

EUR/USD closed the week above 1.1360 and averted breakout below the support level. It means the pair might start moving up when there is news catalyst. The positive news from U.S-China trade war development might become the fuel for upward movement. If the pair moves upward then we might see it hanging near 1.1500 soon.

today critical levels to watch:

Support: 1.1360, 1.1300, 1.1280, 1.1200

Resistance: 1.1500

GBP/USD

GBP/USD closed at the top of its bearish channel. The closing level provides traders with no clue in the next direction. The pair could either move down and continue its bearish movement inside the channel. Alternatively, it could continue trade inside the 1.2625 – 1.2800 range until breakout happens.

Today Critical level to watch:

Support: 1.2625, 1.2500

Resistance: 1.2800, 1.3000

USD/JPY

USD/JPY bounced from 106.70 – 107.00 support level and closed the week above 107.40. The recovery is positive for the pair and might trigger further bullish movement this week. However, the overall medium-long-term trend of USD/JPY is bearish which suggesting traders to stay cautious. On the upside, 109.00 is the medium-term target.

Today critical levels to watch:

Support: 107.40, 107.00

Resistance: 108.00, 108.50, 109.00

AUD/USD

The pair notch gains above 0.7000 and continues its upward movement before closed the week near top of its bearish channel. No bearish reaction yet and it is possible for AUD/USD to extend gain above the channel. Traders will continue to observe the pair movement near the top of the channel and enter short positions when the pair formed a strong bearish pattern.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000