USDX (USD Index)

The bull pulled out short stick by the end of week and U.S dollar index sold hard by the bear back to its weekly opening level. The bearish movement rather strong and could continue into next week. There is a shift in fundamental which trigger the rally in the stock market and a decline in U.S dollar.

First, U.S banking sector rejoices after stress test result released by The Fed. Second, European Union reaches a major milestone in dealing with the immigration problem.

Technically, it is a rejection from 95.00 for U.S dollar index, and it could continue lower in the coming week.

News to watch

08.30 AM U.S Final GDP q/q, forecast increase of 2.2%

For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 June 2018

Technical Analysis

EUR/USD

EUR/USD bull blessed by the bounce from 1.1500 – 1.1580 support area. Strong momentum erased losses incurred this week and set EUR/USD to close above opening level. It means possible bullish pin bar formed from major support level and could lead to a further bullish rally in the coming week.

Today critical level to watch:

Support: 1.1650, 1.1600, 1.1580, 1.1500

Resistance: 1.1710

GBP/USD

GBP/USD bounced from the bottom of the channel and 1.3050 horizontal support levels. It is an expected bounce even though the pair has not reached 1.3000 major support level yet. The bull could push the price higher toward the top of the channel around 1.3250 – 1.3300 before the pair reverse again.

Traders could watch the top of channel and 1.3250 – 1.3300 area for short position.

Today critical level to watch:

Support: 1.3100, 1.3000

Resistance: 1.3250, 1.3300, 1.3330

USD/JPY

A breakout above triangle pattern happened today, could it mean the bull finally take control and ready to bring USD/JPY to a new high? Traders must wait until the close of the daily candlestick to determine if the breakout is valid.

Today critical level to watch:

Support: 110.50, 110.00, 109.50

Resistance: 111.00

AUD/USD

AUD/USD set the floor at 0.7330 and currently move up from it. The pair expected to move between 0.7330 – 0.7450 until breakout either side happen. We still expect the pair to continue lower, but traders might want to watch the ranging movement and trade both side for now.

Today critical level to watch:

Support: 0.7330, 0.7300

Resistance: 0.7400, 0.7500, 0.7550, 0.7600