USDX (USD Index)

U.S dollar index made a surprise bullish breakout yesterday. It seems traders uncertain about next week FOMC meeting and prepares for a surprise. Not much pressure was seen on the index at the current time. However, we think current bullish pressure will slowly losing momentum and the index might trade near 97.50 until next week FOMC.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 22-26 July 2019

Technical Analysis

EUR/USD

The pair tumbled below 1.1185 and suggest a continuation of the bearish trend. Today, the pair continue lower and test the level near 1.1120 before turning upward. At the current time, EUR/USD traded near its opening level. It might range between 1.1120 – 1.1185 until next week FOMC meeting.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1180, 1.1200, 1.1280, 1.1300

GBP/USD

GBP/USD traded lower for three days and tested previous bullish candlestick low. The test resulted in a bullish reaction today and the pair has climbed above the previous day high. It seems GBP/USD could continue upside toward the top of the channel. No change to the bearish outlook yet which is inside the bearish channel.

Today Critical level to watch:

Support: 1.2500, 1.2400

Resistance: 1.2625, 1.2800

USD/JPY

Not much clue yet in USD/JPY direction, the pair bounced from 107.40 support level and settle at the middle of 107.40 – 109.00 range. The pair might continue upward and target 109.00 but it also could move lower and test 107.40 again.

Today critical levels to watch:

Support: 108.00, 107.40, 107.00

Resistance: 108.50, 109.00

AUD/USD

The bull could not maintain the altitude and AUD/USD gradually move lower each day since the test of the level near SMA 200. Today, the pair falls below 0.7000 and might change the short-term trend from bullish to bearish again. If the pair could not climb above 0.7000 by the end of the week then traders who hold long positions might want to be really careful.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000, 0.7100