USDX (USD Index)
U.S dollar index extended its bullish close and secured a close inside 100.00 – 100.30 area. The index might continue its upward movement and breakout above 100.30. However, there is no confirmation yet for the bullish movement at the current time. Traders will wait for the further reaction from the resistance area for now.
News to watch
07.30 AM U.S Unemployment Claims, forecast 3000k
09.00 AM ECB President Lagarde Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 04 – 08 May 2020
EUR/USD
The bearish movement of EUR/USD has reached the 1.0800 support level and currently, the pair is testing the support level. No bullish indication and the pair can continue lower and extend its bearish movement to target 1.06500.
today critical levels to watch:
Support: 1.0800, 1.0650
Resistance: 1.0900, 1.1000
GBP/USD
UK MPC maintains the interest-rate steady at 0.1% and cited the economy could shrink up to 14% in 2020. GBP/USD swing higher and lower immediately after the event and currently might continue moving lower. If the pair continues its downward movement then 1.2000 – 1.2200 support area will become the focus.
Today Critical level to watch:
Support: 1.2200, 1.2000
Resistance: 1.2500, 1.2625
USD/JPY
USD/JPY closed below 106.70 with strong bearish close. The pair no set to continue its bearish movement and target 105.00 support level. Today, there is a bullish reaction and the pair might retest 106.70 before deciding the next direction. Traders could use 106.70 as the level to look for short positions.
Today critical levels to watch:
Support: 105.00
Resistance: 106.70, 108.00, 109.00
AUD/USD
AUD/USD made a bearish close yesterday but it seems the bearish reaction is temporary. Today, there is strong bullish pressure which has surpassed the previous day high. If the bull could continue to maintain the bullish pressure then we might see AUD/USD testing 0.6500 resistance again soon.
Today critical levels to watch:
Support: 0.6300
Resistance: 0.6500, 0.6700