USDX (USD Index)
U.S dollar index finally stages a bounce from the level near SMA 200. The bounce formed a bullish engulfing pattern which if confirmed will trigger new bullish leg. At the current time, the bull has not returned yet to the market and the index slightly lower. We might see some action later in European and U.S session.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 10-14 June 2019
Technical Analysis
EUR/USD
EUR/USD pushed lower and closed below 1.1300. It is a bearish sign but no follow-through by the bear yet. At the current time, the pair attempting to return above 1.1300 and trade inside 1.1300 – 1.1360 range again. A close below 1.1280 should trigger bearish continuation.
today critical levels to watch:
Support: 1.1280, 1.1200, 1.1185, 1.1120
Resistance: 1.1300, 1.1360
GBP/USD
GBP/USD is directionless, traded back and forth at the middle of 1.2625 – 1.2800 range. Nothing to do yet at the moment. It is better for traders to wait until the pair reach the top or the bottom of the range first before placing any positions.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800, 1.3000, 1.3125, 1.3250
USD/JPY
USD/JPY corrected higher and traded inside the channel range. It formed a bearish flag or bearish wedge pattern which could lead the pair lower when confirmed. No confirmation yet, as long as the pair stays above the bottom of the channel and climb above 109.00 then it will reverse the trend into bullish.
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 108.50, 109.00, 109.70
AUD/USD
Short near 0.7000 and stay short is the right decision for traders. AUD/USD gradually move lower since the rejection from 0.7000. It might reach the bottom of the red channel before it could turn higher. Traders might want to wait for the pair to bounce before placing any short positions. Long positions are not suggested and better taken as a counter-trend approach only.
Today critical levels to watch:
Support: 0.6900
Resistance: 0.7000