USDX (USD Index)
We are getting close to the announcement of interest-rate by The Fed. U.S dollar index is leaning upward in the previous day and reach 94.00 resistance today. However, the bear limit the index upward movement and reverse the gain. Currently, traders might want to stay sideline and see if the bear will add more selling pressure after The Fed.
News to watch
02.00 PM Federal Funds Rate, expectation increase 25 bps from 1.75% to 2.0%
For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 June 2018
Technical Analysis
EUR/USD
EUR/USD bounce from support level has claimed 1.1710 back. However, the pair has not escaped from the bearish trend yet. 1.1820 is the resistance level to watch today. On the upside, there is black trendline and daily SMA 200. A closure above 1.1820 is significant and might lead EUR/USD further upside.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
GBP/USD looks bullish on the daily chart and might make a bullish rally from the current level. However, watching the weekly chart, we realize the bear might still in control and current upward movement is a form of correction. The key for the bull and the bear is 1.3450 – 1.3600 area. A breakout above the area will lead GBP/USD to a new bullish leg. On the other hand, a rejection followed by lower low below 1.3200 is the bearish invitation.
Today critical level to watch:
Support: 1.3330, 1.3300
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY optimistic at the start of the day, but turned hesitant nearing the Fed interest-rate announcement. It is possible the pair will start moving down sharply and fall below daily SMA 200 by the end of the day. We will watch how the pair reacted after the news.
Today critical level to watch:
Support: 110.00, 109.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD bounced from a level near 0.7550 and continued print new intraday high. Traders turned impatient before The Fed news and decided to buy the resistance turned support level. If there is no major change after the news and the bull in control, then we might see AUD/USD head higher toward 0.7640 – 0.7690. On the other hand, strong bearish sentiment could bring the pair below 0.7500.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7600, 0.7640, 0.7690, 0.7750