USDX (USD Index)

Not much change in the U.S dollar index projection. The index stick near 97.50 before U.S-China trade talk commence this Wednesday. Judging from the technical pattern, we should see a bounce from the support 97.50. However, the situation could change drastically depending on the result of trade talks between Wednesday – Friday.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 6-10 May 2019

Technical Analysis

EUR/USD

Similar to the U.S dollar index, EUR/USD is not moving really much from the 1.1185. The pair currently has the range between 1.1185 and the top of the channel. We could expect further consolidation near 1.1185 and possible high volatility movement by the end of the week.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1200, 1.1300

GBP/USD

No bullish follow-up by the bull since the close above SMA 200. GBP/USD move slowly lower and currently traded below SMA 200. It is possible for the pair to continue toward 1.3000 before it could find footing. Traders could observe the area between 1.3000 and SMA 200 to look for long positions when there are bullish reactions.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250

USD/JPY

USD/JPY completed the bearish movement toward 110.00 support today and there is no bullish reaction from the support level yet. We will continue observing the price reaction at the support. A bounce might happen toward 111.00 where traders could look for short positions.

Today critical levels to watch:

Support: 110.00

Resistance: 110.50, 111.00, 112.00, 112.5

AUD/USD

No clue yet on AUD/USD next direction, the pair consolidate near 0.7000 and made initial bounce yesterday. The bounce quickly lost movement but manage to settle above Monday high. Today, the pair has not moved much from its opening level and might continue consolidation near 0.7000.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200