USDX (USD Index)
U.S dollar index consolidation continues inside the yellow box as the index testing bottom of consolidation. The rate of fall is normal and contained by the bull at 94.30. It is possible for the index to continue toward 94.00 and test it. We think monthly close will settle between 94.00 – 95.00 and continue test 94.00 before reverse upside in the coming month.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 30 July – 3 August 2018
Technical Analysis
EUR/USD
Monday trading session chooses the bull as the winner after the pair climb and ready to close the day near 1.1710 resistance. The upward momentum could continue in the last day of July. However, we think EUR/USD will settle inside 1.1580 – 1.1710 range.
Without any major change in the sentiment, traders better stick with the sideways scenario.
Today critical level to watch:
Support: 1.1650, 1.1600
Resistance: 1.1710, 1.1820
GBP/USD
Nothing to change yet in GBP/USD analysis. The pair is moving neatly inside the bearish channel and rejected from the top of channel Friday previous week. Although it is bearish, it seems GBP/USD might close near 1.3125 and start August near it.
Today critical level to watch:
Support: 1.3125, 1.3100, 1.3000
Resistance: 1.3250, 1.3300
USD/JPY
No bounce and breakout happened yet in USD/JPY. Traders and investors stay flat, waiting for monthly close which is expected near 111.00. Outlook favors bullish bounce from current level as long as the pair stays above 110.50. A close below 110.50 is a bearish sign and indicate daily SMA 200 test.
Today critical level to watch:
Support: 111.00, 110.50
Resistance: 112.00, 112.50, 113.00, 113.20
AUD/USD
AUD/USD chart shouting consolidation in the green box and hint traders to continue to trade the range. There is nothing to do at the moment as the pair hanging at the middle of the range. It is possible for AUD/USD to move wildly before the close of the month. However, we think the pair will close inside the green box.
Today critical level to watch:
Support: 0.7330
Resistance: 0.7400, 0.7500