USDX (USD Index)
U.S dollar index traded lower initially in the previous trading day. However, the index recovered most of its losses and closed near its opening level. It is a bullish sign but no breakout above the bearish channel yet. Today, the index is under pressure. Will it close below the previous day low and the daily SMA 200?
News to watch
08.30 AM U.S PPI m/m, forecast 0.1%
For full outlook for this week, you can follow Forex Outlook For The Week 8-12 July 2019
Technical Analysis
EUR/USD
EUR/USD tested 1.12820 yesterday and slightly lower after the test. The pair formed a bearish pin bar pattern but no confirmation yet for now. If the pair could continue upward and close above the previous day high then we could expect EUR/USD to extend gain toward 1.1300 – 1.1360.
today critical levels to watch:
Support: 1.1200, 1.1180
Resistance: 1.1280, 1.1300, 1.1360, 1.1500
GBP/USD
GBP/USD bounces from the bottom of channel continue for the third day. We could expect the pair to continue higher and reach the top of the channel. Traders could prepare for short positions near the top of the channel when there are bearish reactions.
Today Critical level to watch:
Support: 1.2500
Resistance: 1.2625, 1.2800
USD/JPY
The bullish correction toward 109.00 resistance has finished but it is hard to determine if USD/JPY will continue lower of not. Yesterday the pair dip below the support trendline but manage to return above it and closed the day positive. It is a strong bullish pin bar pattern. However, the pattern still needs further confirmation. Will the pair bounce from the trendline and continue higher? Alternatively, will it breakout lower and close below the pin bar low?
Today critical levels to watch:
Support: 108.00, 107.40, 107.00
Resistance: 108.50, 109.00
AUD/USD
AUD/USD is on the verge of a bullish breakout above the bearish channel. The pair gain for the third day and no bearish reaction yet for now. If the pair manages to close above 0.7000 and the top of channel then it is possible to see it extend gain toward daily SMA 200.
Today critical levels to watch:
Support: 0.6900
Resistance: 0.7000, 0.7100