USDX (USD Index)

Similar to the previous day outlook, U.S dollar index upward movement still continue and expected to reach 99.40 – 100.00 in the long-term. The only thing which will hinder current uptrend is the breakout below 97.50 or the trendline.

News to watch

08.30 AM U.S Prelim GDP q/q, forecast 3.1%

For full outlook for this week, you can follow Forex Outlook For The Week 27-31 May 2019

Technical Analysis

EUR/USD

EUR/USD getting near the support 1.1120 as expected and might continue lower under strong bearish pressure. But, the situation could change if the pair could bounce from 1.1120 and breakout above its bearish channel. Without breakout above the channel, it is better for traders to maintain short positions.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

No hope for GBP/USD to bounce as the pair under pressure and reach 1.2625. It is better for traders to avoid long positions at least until the pair form a bullish reversal pattern. At the current time, holding short positions might be the best idea. But, additional short positions at the current level is not suggested, wait until upside correction happen.

Today Critical level to watch:

Support: 1.2625, 1.2500

Resistance: 1.2800, 1.3000, 1.3125, 1.3250

USD/JPY

A double bottom pattern is under progress in USD/JPY. The pair sloping upside and ready to test 109.50 – 110.00 area. If the pair could breakout above the resistance area then it will target 110.50 resistance. The breakout above 110.50 is initial confirmation of a double bottom breakout.

The pattern has not formed yet and may not form, traders will continue to monitor the pair movement at the moment.

Today critical levels to watch:

Support: 109.00

Resistance: 109.70, 110.00, 110.50

AUD/USD

No change to the AUD/USD outlook, the pair still traded sideways and searching for direction. We favor short positions over long positions and suggest traders wait until the pair near resistance to enter short positions.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000