USDX (USD Index)
The bullish trend of U.S dollar index come under test again after the index fell at the end of the previous week. This week, the index will test the bottom of the triangle and confirm whether it will continue upside or start a new bearish leg below 97.50.
If a bounce happens then traders could enter long positions with the hope that the resistance around 98.50 will be broken.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 3-7 June 2019
Technical Analysis
EUR/USD
EUR/USD bounced from support 1.1120 and closed the week near top of its bearish channel. It looks bullish, but the pair still need a close above the top of the channel before the trend could turn bullish. The overall outlook continues bearish with 1.1120 support level as the focus. A breakout below the support level should trigger bearish continuation leg.
today critical levels to watch:
Support: 1.1120
Resistance: 1.1185, 1.1200, 1.1300
GBP/USD
GBP/USD stage a rally at the end of the previous week and avoided closure below 1.2625. The pair formed a bullish pin bar pattern and might be ready to start the rally from the current level. If a rally happens then GBP/USD will target the nearest trendline and 1.2800 resistance.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800, 1.3000, 1.3125, 1.3250
USD/JPY
A major bearish candlestick formed on USD/JPY daily chart. It is a full bearish candlestick and suggested traders to avoid long position until the pair lose its bearish momentum. Under the current situation, the pair might test the red trendline and 107.40 support level soon.
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 109.00, 109.70
AUD/USD
Is it the time for AUD/USD to start the bullish correction? No answer yet, but if the bullish correction happens then traders could expect the pair to test the red trendline and later 0.7000 resistance level. When the pair reach 0.7000 traders could prepare for medium-term short positions.
Today critical levels to watch:
Support: 0.6900
Resistance: 0.7000