USDX (USD Index)

U.S dollar index back near to the beginning level of the week and erase most of the gain. The event might mean the end of short-term bullish rally and time for the bear to take control. If the correction continues, then next week we will see the index trading lower to test 92.00 support level.

News to watch

09.15 AM ECB President Draghi Speaks

For full outlook for this week, you can follow Forex Outlook For The Week 7 – 11 May 2018

Technical Analysis

EUR/USD

The bounce from 1.1820 support level brought EUR/USD to close near 1.1925. The pair needs a close above 1.1925 or 1.2000 to create reversal pattern on the weekly chart. We have an opening level of 1.1957 for the week, a close near it or above it is the best scenario for the bull.

Today critical level to watch:

Support: 1.1820, 1.1710

Resistance: 1.1925, 1.2000, 1.2100, 1.2200

GBP/USD

Sideway is the trend projection for GBP/USD as the pair traded inside the orange box. There is an indication the pair brewing explosive move but no confirmation yet which direction the explosion will happen. Traders will continue to trade the range with a stop outside the box.

Today critical level to watch:

Support: 1.3500, 1.3450

Resistance: 1.3600, 1.3835, 1.4000, 1.4140

USD/JPY

USD/JPY traded between 109.00 and daily SMA 200 on the daily chart. The pair is in a bullish trend and could continue upward to test the averages before turning down. Today, there is mild buying by the bull. Will we see another upward attempt to test the resistance today?

Today critical level to watch:

Support: 109.00, 108.00, 107.40, 107.00, 106.70

Resistance: 110.00, 110.50

AUD/USD

AUD/USD settled back inside the blue box area of 0.7500 – 0.7550. Although it is bullish, the pair has yet to surpass 0.7550 and cancel current breakout lower. We expect the pair traded sideways between 0.7500 – 0.7550 with an upside bias.

Today critical level to watch:

Support: 0.7500

Resistance: 0.7550, 0.7600