USDX (USD Index)
The bearish movement of U.S dollar index continues at the beginning of the week and the index testing 94.30 support level. It seems we will see a continuation toward 94.00 before significant bounce happen. Meanwhile, the range of the U.S dollar index span inside the yellow box between 94.00 – 95.50.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 23 – 27 July 2018
Technical Analysis
EUR/USD
EUR/USD entered the higher range above 1.1710 and used the level as support at the moment. The pair has opportunities to continue further upside and test trendline. Depend on the test, the pair could breakout above it or rejected and fell back to the green box area.
Today critical level to watch:
Support: 1.1710, 1.1650, 1.1600
Resistance: 1.1820
GBP/USD
The weakness of GBP/USD dissipates when the pair hit the bottom of its bearish channel. The bounce happens from the bottom of the channel and 1.3000 support level as expected. Currently, the bull is in control and could easily bring the pair toward the top of the channel. It is better to wait until the pair hit the top of the channel and take a short position on rejection.
Today critical level to watch:
Support: 1.3100, 1.3000
Resistance: 1.3250, 1.3300
USD/JPY
Long position from the trendline and breakout point 111.00 is the best idea for USD/JPY. However, the downward pressure is strong and has not stopped yet. If a bullish pattern formed near both levels, then traders could start looking for a long position with the target above 113.20.
Today critical level to watch:
Support: 111.00, 110.50
Resistance: 112.00, 112.50, 113.00, 113.20
AUD/USD
The same outlook is seen in AUD/USD as the pair stays inside the green box area. There is nothing to change at the moment, and traders could continue to use the range to take a position. However, a false upside breakout could happen this week to sweep away the weak short position hand.
Today critical level to watch:
Support: 0.7400, 0.7330
Resistance: 0.7500