USDX (USD Index)

The upward movement of U.S dollar index hit an obstacle in the previous week and print a bearish pin bar candlestick on Friday. The bearish pattern followed through by the bear today as the price move below Friday low. If the index continues lower, then it might test 94.00 again.

News to watch

08.30 AM U.S Core Retail Sales m/m, forecast increase of 0.4%. Retail Sales m/m, estimate increase of 0.4%.

For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 July 2018

Technical Analysis

EUR/USD

EUR/USD short-term outlook turn bullish once again after the bullish pin bar formed and the pair move above it today. Confirmation still needed by the close of trading days. If EUR/USD could maintain a level above Friday high and climb above 1.1710, then the medium-trend might change to bullish too.

Today critical level to watch:

Support: 1.1650, 1.1600

Resistance: 1.1710, 1.1820

GBP/USD

GBP/USD set the floor at 1.31250 after it bounces from it on Friday. The pair projection continues inside the bearish channel. However, there is a possibility the bull could break above the channel and cancel the prevailing trend from bearish to bullish.

Today critical level to watch:

Support: 1.3100, 1.3000

Resistance: 1.3250, 1.3300, 1.3330

USD/JPY

The pair has not broken above 112.50 yet, and it sticks near it. We will continue to wait for the reaction from the level, either breakout or rejection before placing any position.

Today critical level to watch:

Support: 111.00, 110.50

Resistance: 112.50

AUD/USD

No change to the analysis of AUD/USD which continues moving inside the green box area. However, there is buying done before the pair could reach the bottom of the box. Will the bull continue holding the upper hand and push AUD/USD above the green box?

Today critical level to watch:

Support: 0.7400, 0.7330

Resistance: 0.7500