USDX (USD Index)
We have a major surprise in the U.S dollar index today. The index launches higher after the bounce from daily SMA 200. No stop to the bullish pressure yet and the index expected to reach 97.50 resistance soon. It is a bullish reaction before the end of the month FOMC meeting. Traders might expect the index to be limited below 97.50 until the end of the month.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 15-19 July 2019
Technical Analysis
EUR/USD
EUR/USD rejected from 1.1280 and never reach 1.1300 in the latest rally. At the current time, the pair fall toward the bullish trendline and ready for a test. If the pair could bounce from the trendline then traders could expect another test on 1.1280 – 1.1300 resistance again. however, a breakout will trigger further selling toward 1.1185 support.
today critical levels to watch:
Support: 1.1200, 1.1180
Resistance: 1.1280, 1.1300, 1.1360, 1.1500
GBP/USD
GBP/USD turn lower in the previous trading day and drop toward the bottom of the channel today. The bearish movement incited by Brexit situation which shows no progress. Fear of No-deal Brexit resurface and reflected on the pair. As long as there is no improvement in the Brexit situation, GBP/USD expected to continue moving inside the bearish channel.
Today Critical level to watch:
Support: 1.2400
Resistance: 1.2500, 1.2625, 1.2800
USD/JPY
Friday bearish candlestick is the confirmation that USD/JPY will continue to move lower. However, the pair stop moving down yesterday and today we see USD/JPY move higher above the Monday high. If the pair could close above the previous day high then we might see continuation toward 109.00.
Today critical levels to watch:
Support: 108.00, 107.40, 107.00
Resistance: 108.50, 109.00
AUD/USD
AUD/USD closed above the bearish channel and possibly turn the trend from bearish to bullish. However, the bull must stay alert as the pair currently under bearish pressure. We might see a test on 0.7000 and the top of the channel soon. If the pair could bounce from both support levels then we will see bullish continuation toward the daily SMA 200.
Today critical levels to watch:
Support: 0.7000, 0.6900
Resistance: 0.7100