USDX (USD Index)
The expectation of interest-rate high gets higher after the spike of long-term government debt to a level above 3%. The event helped U.S dollar index to claim 93.00 and head to 94.00 resistance. There is nothing to stop the index yet, and traders could expect the uptrend continue toward the next resistance.
Next week, The Fed will release minutes of the meeting which will give a hint how hawkish the members before next rate decision on 13th June.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 May 2018
Technical Analysis
EUR/USD
The bull has not shown its nose on the EUR/USD chart. Pressure continuously applied by the bear and EUR/USD closed below 1.1820 the first time since December’17. There is no stopping yet for the bear, but the pair is in stalemate condition today. Will the bear manage to push the price lower below 1.1820?
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
GBP/USD bounced from 1.3450 as expected and headed higher today. However, the bear took control of the pair before it touches the daily SMA 200. Currently, the pair traded back to its opening level and might attempt to close the day below the opening level. Will the bear seize back control and push the pair lower below 1.3450 this week?
Today critical level to watch:
Support: 1.3450
Resistance: 1.3500, 1.3600, 1.3835, 1.4000, 1.4140
USD/JPY
USD/JPY maintained a position above the daily SMA 200 and bounced from it as expected. The pair launched upward and headed to 111.00. There is no bearish reaction yet which suggest no short position to take. Traders who hold long position could move stop below the daily SMA 200.
Today critical level to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
Each time the bull bring the pair near 0.7550, there is rejection happen. Today, there is no exception for the upward attempt, it is rejected from the level, and looks will test the bottom range at 0.7500. If the pair closed below 0.7500, then traders could hold short position and add more short near the level.
Today critical level to watch:
Support: 0.7500, 0.7450
Resistance: 0.7550, 0.7600