USDX (USD Index)

The overall direction of the U.S dollar index is bullish for the short-term. At the current time, the index has reached the 100.00 – 100.30 area. No major reaction from the resistance area yet. If the index could continue further upward and close above 100.30 then we will expect medium-term bullish continuation.

News to watch

07.15 AM U.S ADP Non-Farm Employment Change, forecast -20500k

For full outlook for this week, you can follow Forex Outlook For The Week 04 – 08 May 2020

EUR/USD

EUR/USD extends its bearish movement for the third day and currently testing the 1.0800 support level. If the pair could maintain its positions above the 1.0800 support level then it is possible that EUR/USD could move higher and retest 1.1000.

today critical levels to watch:

Support: 1.0900, 1.0800, 1.0650

Resistance: 1.1000

GBP/USD

GBP/USD could not lift the price toward 1.2625 and currently under bearish pressure. No lower low printed yet on the chart which means the pair still has a chance to return to its bullish track. Traders will observe the pair reaction when it gets near the 1.2000 – 1.2200 support area.

Today Critical level to watch:

Support: 1.2200, 1.2000

Resistance: 1.2500, 1.2625

USD/JPY

USD/JPY gives up the 106.70 support level and currently on the path lower to target 105.00. No bullish reaction at the current time. Traders could use the 106.70 level as the resistance to place short positions.

Today critical levels to watch:

Support: 106.70, 105.00

Resistance: 108.00, 109.00

AUD/USD

AUD/USD formed a bearish pin bar pattern yesterday but it is not an indication that the trend has changed to bearish. Today, the pair attempting to bring the pair upward. As long as the bearish pattern not confirmed, AUD/USD has the chance to continue its upward movement and retest 0.6500.

Today critical levels to watch:

Support: 0.6300

Resistance: 0.6500, 0.6700