USDX (USD Index)

We have a clear bearish breakout in the U.S dollar index and the index closed below 97.50 support level. This week, the index expected to continue its lower move and target 96.70 for medium-term. However, if the index could return above 97.50 by the end of the week then we could expect the start of a new bullish leg.

Technical Analysis

EUR/USD

The upward movement of EUR/USD extended on Friday and the pair closed near the top of the channel. No change to the outlook yet and the pair will continue its movement inside the channel as long as there is no upside breakout. Above the channel, there is 1.1300 resistance which will become a target if the breakout happens.

today critical levels to watch:

Support: 1.1200, 1.1185, 1.1120

Resistance: 1.1300

GBP/USD

A close between 1.3000 and daily SMA 200 warrant more consolidation in GBP/USD this week. This week traders will continue observing the pair movement inside the range and waiting for a breakout.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250

USD/JPY

We have the first bullish reaction after five days of consecutive bearish close. It might develop into a new bullish leg. However, the pair formed a lower low below 109.71 which mean the bear might have the upper hand. If a bullish correction happens then traders could prepare to enter short positions near 110.50 – 111.00

Today critical levels to watch:

Support: 109.00

Resistance: 110.00, 110.50, 111.00, 112.00

AUD/USD

At the end of the previous week, AUD/USD closed right at 0.7000 and provide us with a neutral outlook. The support level acted as strong as expected. It will not be an easy task for the bear to make a breakout below the level. Currently, the bull might return and take control from the bear. But expect limited upside in the pair.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200