USDX (USD Index)

U.S dollar index manages to return above 96.10 in the previous trading day. The index opened higher today but no follow-through above previous day high yet. If the index continues higher then we could expect it will reach daily SMA 200 or 96.70.

News to watch

05.15 AM UK Inflation Report Hearings

08.30 AM U.S Core Durable Goods Orders m/m, forecast 0.1%

For full outlook for this week, you can follow Forex Outlook For The Week 24-28 June 2019

Technical Analysis

EUR/USD

EUR/USD print a bearish engulfing pattern yesterday and currently under risk of a bearish breakdown. Fortunately, the pair manage to close above 1.1360 and daily SMA 200. As long as the pair manage another close above the level then EUR/USD might be able to avoid bearish breakdown.

today critical levels to watch:

Support: 1.1360, 1.1300, 1.1280, 1.1200

Resistance: 1.1500

GBP/USD

Similar to EUR/USD, GBP/USD formed a bearish engulfing pattern and under risk for further downside. No change to the projection of GBP/USD which is inside 1.2625 – 1.2800. When the pair reach the bottom of the range, traders could look for long positions.

Today Critical level to watch:

Support: 1.2625, 1.2500

Resistance: 1.2800, 1.3000

USD/JPY

USD/JPY printed lower low and manage to reach 106.70 – 107.00 area. The pair reversed upside today and surpassed the previous day high. Will USD/JPY manage to close above 107.40 and continue upward? Alternatively, will it close below 107.40 and continue its bearish trend?

Today critical levels to watch:

Support: 107.00

Resistance: 107.40, 108.50, 109.00

AUD/USD

Not change in the pair direction, it continues moving upward and soon will reach 0.7000 or the top of the bearish channel. Traders will prepare for short positions when there is a bearish reaction near it.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000