USDX (USD Index)
We could ask a question, what will happen next after the index tested 94.00? Will the index bounce from the current level or continue lower toward 93.00? There is no answer to the question yet, and both scenarios are possible. Traders will wait for the further reaction from the 94.00 support level. At this moment, there is small buying by the bull.
News to watch
04.30 UK GDP, Manufacturing Production m/m estimate increase of 1.0%
For full outlook for this week, you can follow Forex Outlook For The Week 9 – 13 July 2018
Technical Analysis
EUR/USD
EUR/USD escaped the green box, but Monday close still trapped inside Friday range. There pair expected to move lower and test the breakout level 1.1710. After the test, it is possible for the pair to continue higher or resume its bearish trend.
Today critical level to watch:
Support: 1.1710, 1.1650, 1.1600
Resistance: 1.1820
GBP/USD
GBP/USD is moving as expected at the top of its bearish channel. The pair rejected and formed a bearish candlestick. Currently, it is supported by the 1.3250 support level and looking for a bounce. Will the pair continue higher or respect the channel and move inside it?
Today critical level to watch:
Support: 1.3250, 1.3100, 1.3000
Resistance: 1.3300, 1.3330
USD/JPY
The bull is winning the battle in USD/JPY as the pair bounced from the triangle pattern. The bullish pressure continued today and made fresh high above 111.00. There is no conclusion yet on USD/JPY next direction. However, it is better to stay bullish under current situation while expecting a breakout above 111.00.
Today critical level to watch:
Support: 110.50, 110.00, 109.50
Resistance: 111.00
AUD/USD
AUD/USD climbed above the green box area and closed above it Yesterday. The upward movement has the potential to continue toward 0.7500. However, traders might want to avoid placing a long position at the current level as it is a long position toward resistance. There is high chance rejection could happen when AUD/USD hit blue box area.
Today critical level to watch:
Support: 0.7400, 0.7330, 0.7300
Resistance: 0.7500, 0.7550, 0.7600