USDX (USD Index)

A fresh high printed on the U.S dollar index daily chart which tells us that the uptrend has not finished yet. Currently, the index getting near the previous month high and ready to test it. We expect breakout above the high and continuation toward 99.40 – 100.00. However, it is possible for the index to reverse and start a new bearish leg toward 97.50.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 20-24 May 2019

Technical Analysis

EUR/USD

EUR/USD drifted lower in today trading session and almost reach 1.1120 support level. The pair bearish trend should continue for now with 1.1120 as the target. It is possible a bounce will happen when the support level reached and the pair will range between 1.1120 – 1.1185.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

The pair is bearish and no hope for bounce as it fell below 1.2625 today. No reason to enter long positions as the bearish pressure prevail. At the current time, traders could continue to hold short positions while waiting for a first bullish candlestick to form on GBP/USD daily chart.

Today Critical level to watch:

Support: 1.2625

Resistance: 1.2800, 1.3000, 1.3125, 1.3250

USD/JPY

A rejection from 110.50 happened in USD/JPY and the pair slightly lower today. However, the bearish pressure do not hold and we have the pair moving back near its opening level. USD/JPY expected to range between 110.00 – 110.50 with bearish bias for now.

Today critical levels to watch:

Support: 110.00, 109.70, 109.00

Resistance: 110.50

AUD/USD

The direction of AUD/USD continues bearish without any hope for a bounce. The pair do not make a lower low on the chart, but the high gets lower which mean it is only a matter of time before a new lower low printed on the chart. At the current time, it is better to stay sideline without any positions.

Today critical levels to watch:

Support: –

Resistance: 0.6900, 0.7000