USDX (USD Index)

A bounce happened in U.S dollar index after the test on 94.30 support level. It is an expected bounce, and the index will continue inside projected yellow box area with a bullish bias. Currently, traders could start looking for the long position in U.S dollar pairs and hold it until the top of yellow box reached.

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 closed lower in Yesterday trading session, the pair fell below 1.1710 again and indicate ranging movement inside the green box will continue. Short position from the current level with a tight stop above the previous day high is the best idea to take at the moment.

Today critical level to watch:

Support: 1.1650, 1.1600

Resistance: 1.1710, 1.1820

GBP/USD

GBP/USD could not surpass Friday high and 1.3125 resistance. The pair show rejection and turned lower today, it seems we might not see the top of channel touched soon. It is possible for the pair to move lower and test 1.3000 this week. Traders might want to observe the reaction near the level to determine if bounce or breakout will happen.

Today critical level to watch:

Support: 1.3000

Resistance: 1.3100, 1.3250, 1.3300

USD/JPY

A bullish pin bar formed on USD/JPY daily chart after the trendline test. There are two trendlines which supported the pair from further downside and bounce also happen after 111.00 test as expected. If the bull could maintain the position and close above previous day high, then USD/JPY could continue the uptrend to retest 113.20.

Today critical level to watch:

Support: 111.00, 110.50

Resistance: 112.00, 112.50, 113.00, 113.20

AUD/USD

AUD/USD outlook continue inside the green box range, and currently, the pair pointed downward to test the bottom of the range. Traders could continue to use the opportunity to trade the range. However, the long-term trend continues bearish which suggest less long positions than short positions.

Today critical level to watch:

Support: 0.7330

Resistance: 0.7400, 0.7500