USDX (USD Index)
U.S dollar index launched from the daily SMA 200 at the end of the previous week after Non-farm employment data logged increase of 224k vs. 162k expectation. The number might lower the chance of The Fed cutting interest-rate this month. However, we think the current bullish reaction is a temporary reaction toward the job data only.
On the chart, we could see U.S dollar index closed at the top of its bearish channel. No breakout yet. Will the index breakout or rejected from the top of the channel this week?
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 8-12 July 2019
Technical Analysis
EUR/USD
EUR/USD dropped below its bullish trendline and getting near 1.1185 support level. It seems the bull will have a hard time to reverse current bearish pressure. If the pair manages to reach 1.1185 and form a bullish pattern then traders could start looking for long positions. Meanwhile, wait until the bearish pressure recede.
today critical levels to watch:
Support: 1.1200, 1.1180
Resistance: 1.1280, 1.1300, 1.1360, 1.1500
GBP/USD
No help for the bull yet, the pair resumed its bearish trend with a movement below the previous swing low. At the current time, traders who hold short positions could hold it with the bottom of the channel as a target.
Today Critical level to watch:
Support: 1.2500
Resistance: 1.2625, 1.2800, 1.3000
USD/JPY
USD/JPY launched upward at the end of the week. Further upward movement expected this week with 109.00 as upside target. Traders could prepare for short positions when there is a bearish reaction on 109.00 test.
Today critical levels to watch:
Support: 108.00, 107.40, 107.00
Resistance: 108.50, 109.00
AUD/USD
No breakout above the bearish channel yet and there was rejection at the end of the previous week. We might see further bearish pressure this week. If the bear could close AUD/USD below previous week low then traders could expect a continuation of the bearish trend.
Today critical levels to watch:
Support: 0.6900
Resistance: 0.7000, 0.7100