USDX (USD Index)

The downward movement of U.S dollar index halted after The Fed announced an increase of interest-rate which is “priced in.” Fortunately, The Fed Janet Yellen also spurred the market with optimistic outlook saying inflation will accelerate as the job market improved. Currently, the index poking previous week high and might break above it.

If the index could break higher, it will target the broken trendline and attempt to move back inside the triangle range.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 12 – 16 June 2017

Technical Analysis

EUR/USD

It might be the right time for the bear to start correction in EUR/USD prices. The pair formed bearish pin bar which is followed through by a break today. The yellow area between 1.1125 – 1.1160 is the support level to watch. If weekly could close below this support level, it will trigger a deeper correction.

Today critical level to watch:

Support: 1.1125, 1.1050, 1.1000

Resistance: 1.1160, 1.1220, 1.1240, 1.1266, 1.1280

GBP/USD

GBP/USD stay below daily SMA 200 and show no direction yet. The pair is moving in a wide range between 1.2690 – 1.2795 and stuck near its opening price. Although the odds is for the pair to move down, it looks like the bull manage to hold the ground and might attempt another close above daily SMA 200.

Today critical level to watch:

Support: 1.2670, 1.2550, 1.2500

Resistance: 1.2800, 1.2811, 1.2855, 1.2900

USD/JPY

USD/JPY finally reached its 109.00 targets and made a sharp reversal upside. The pair bounced almost 200 pips in just two days and moving near the top of the bearish trendline. Normalization process happened immediately and might continue higher if the momentum continues tomorrow.

Traders could use 110.50 as the support level and gradually moving stop higher when the pair break above the bearish trendline.

Today critical level to watch:

Support: 110.50, 109.00, 108.11, 107.00

Resistance: 111.00, 112.50

AUD/USD

The bull broke loose above daily SMA 200 but limited below 0.7590. The pair makes an attempt higher today but rejected and might close below 0.7590 for the second day. If the pair decides to move down, it will look for support near the daily SMA 200.

Today critical level to watch:

Support: 0.7550, 0.7500, 0.7450

Resistance: 0.7590, 0.7725, 0.7660, 0.7688