USDX (USD Index)
U.S dollar index took a downward path in the previous day by closing below 95.00. It is a bearish sign and followed by selling today below the low. We think the index will settle between 94.00 – 95.00 range by the end of the week. Next week, traders could look for long position when the index is testing 94.00 support level.
News to watch
OPEC production deals
For full outlook for this week, you can follow Forex Outlook For The Week 18 – 22 June 2018
Technical Analysis
EUR/USD
The bull manages to make a bounce in the previous day when the pair tested 1.1500. It is a valid bounce, and currently EUR/USD moving up, attempting to close above 1.1710. We maintain the bearish outlook on the pair and think 1.1710 will be tested before further downside. Next week range will span between 1.1500 – 1.1710.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500
Resistance: 1.1650, 1.1710
GBP/USD
There are two scenarios to watch in GBP/USD.
Bullish scenario: The pair moves up and maintains the range between 1.3250 – 1.3450, make another test on 1.3250 to create inverse shoulder-head-shoulder pattern. The key for the bull is a breakout of 1.3450 while maintaining 1.3250.
Bearish scenario: GBP/USD limited below 1.3330 and printed new lower low next week.
Today critical level to watch:
Support: 1.3250, 1.3100, 1.3000
Resistance: 1.3300, 1.3330
USD/JPY
Triangle rejection happens in USD/JPY as expected. The pair is moving down and close below daily SMA 200. Without any change to the trend, we will see USD/JPY continue moving inside the triangle and testing lower range soon. Nothing to do at the current time except trading the range.
Today critical level to watch:
Support: 110.00, 109.50, 109.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD bounced before it touches 0.7330. The upward movement almost reached 0.7450 where the pair expected to resume bearish trend after a test. Traders could prepare for short position between 0.7450 – 0.7550 with a tight stop above 0.7582.
Today critical level to watch:
Support: 0.7400, 0.7330, 0.7300
Resistance: 0.7500, 0.7550, 0.7600