USDX (USD Index)

Strong bounce lead U.S dollar index up from the bottom of the yellow box and trigger a bounce toward the top of the range. Daily close of candlestick will happen soon, and we will have a bullish engulfing pattern. Traders who are short U.S dollar better scale out of the position and adopt a U.S dollar bull stance.

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 dropped back inside the gree box area and suggested the bear will take control for the last day of the week. Short position at current level might be too late and regarded as shorting the support level. It is better for traders to stay sideline for now and observe the reaction of the pair near the bottom of the box.

Today critical level to watch:

Support: 1.1650, 1.1600

Resistance: 1.1710, 1.1820

GBP/USD

The bearish channel in GBP/USD is proven its validity once again as the pair bounced lower today. There is no change to GBP/USD outlook which is inside the bearish channel. We expect 1.3000 will be tested again soon.

Today critical level to watch:

Support: 1.3100, 1.3000

Resistance: 1.3250, 1.3300

USD/JPY

The bull still not giving up on USD/JPY with a major recovery above 111.00 today. Overall, the pair still waiting for a significant bounce and there is first close below 111.00 on Wednesday. USD/JPY trend will be determined after the week close. A close below trendline suggests further weakness while a close above it could trigger further buying.

Today critical level to watch:

Support: 111.00, 110.50

Resistance: 112.00, 112.50, 113.00, 113.20

AUD/USD

The chart says it all, AUD/USD continue respected the green box area and currently hanging at the middle of it. Nothing change for traders, trading the range with bearish bias still provide opportunity.

Today critical level to watch:

Support: 0.7330

Resistance: 0.7400, 0.7500