USDX (USD Index)
The Fed slammed U.S dollar index from 97.50 and currently the index traded near daily SMA 200. It seems the trend has switched to bearish and the index might breakout lower from the averages. Traders might want to avoid long positions in the U.S dollar and stick to the short side for now.
News to watch
07.00 AM UK BOE Official Bank Rate forecast 0.75%
For full outlook for this week, you can follow Forex Outlook For The Week 17-21 June 2019
Technical Analysis
EUR/USD
ECB sounded dovish and The Fed also sounded dovish. When both central banks have the same tone then U.S dollar will have more impact. EUR/USD jumped after the rate decision and currently testing 1.1300 resistance. The pair upward movement might continue under strong momentum and traders might want to stay sideline for now. Short positions are not suggested until the bearish pattern formed.
today critical levels to watch:
Support: 1.1280, 1.1200, 1.1185, 1.1120
Resistance: 1.1300, 1.1360
GBP/USD
The pair returned above 1.2625 and continue its upward stride today. Although it is bullish, GBP/USD need to print higher high and close above 1.2800 to ensure current bullish trend will continue. Traders could continue to hold long positions until the pair reach 1.2800. Long positions near 1.2625 could be considered when pullback happens.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800, 1.3000
USD/JPY
USD/JPY breakout from the bottom of the channel and fall toward 107.40 today. The pair made a correction after the level reached but it may fall toward the support level again. No positions suggested at least until the pair reach 107.40, 107.00 or 109.00.
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 108.50, 109.00, 109.70
AUD/USD
Bullish bounce from the bottom of channel gain upward traction. AUD/USD might continue upward and target 0.7000 also the top of the channel. The long-term trend is bearish which favor bearish position to bullish positions. However, traders could make use of current bounce and place long positions with a tight stop.
Today critical levels to watch:
Support: –
Resistance: 0.6900, 0.7000