USDX (USD Index)
U.S dollar index took a lower path and closed below 94.00 as commodities price advance. However, the weakness in index might last for a short time as trade wars, and Italian debt issue linger. If the index continues moving lower, then we might see it close between 93.00 – 94.00 for the week before next week FOMC rate decision.
News to watch
10.30 AM U.S Crude Oil Inventories, forecast deficit of 2.0 million barrels.
For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 June 2018
Technical Analysis
EUR/USD
EUR/USD creep higher out of expectation and close above 1.1710 the first time since the end of May. The pair has not made a decisive close and risk continuation of the bearish trend. We will wait for the bear to reverse current bullish sentiment and close the pair with a strong bearish pattern.
Today critical level to watch:
Support: 1.1650
Resistance: 1.1710, 1.1820, 1.1925, 1.2000
GBP/USD
The bounce of GBP/USD bring new bullish leg for the pair and almost reach the breakout point 1.3450. No change to the previous forecast which expects the pair to move between 1.3250 – 1.3450. Traders could prepare for short position when the pair reach 1.3450 and lose its bullish momentum.
Today critical level to watch:
Support: 1.3330, 1.3300
Resistance: 1.3450, 1.3500
USD/JPY
The bull still in control of USD/JPY as the pair approaching daily SMA 200. No sign of reversal yet, but there is a sign of weakness. Will we see rejection from the averages or breakout above it?
Today critical level to watch:
Support: 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
Flip point of AUD/USD rejected the pair the first time Yesterday. However, the bull did not budge and bring the pair higher with strong momentum today. The day has not closed yet, but it seems AUD/USD will secure range between 0.7640 – 0.7690 this week.
Today critical level to watch:
Support: 0.7640, 0.7600, 0.7550
Resistance: 0.7690, 0.7750