USDX (USD Index)

The bullish movement of the U.S dollar index experienced rejection from the 100.30 resistance level. The index closed bearish yesterday and there is bearish follow-through today. However, the bearish pressure is not strong and currently, the index has moved back to its opening level.

Will the index start moving lower and target the level below 100.00 again?

News to watch

07.30 AM U.S Non-Farm Employment Change, forecast -22000k

Unemployment Rate, forecast 16%

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

EUR/USD

EUR/USD weakens below 1.0800 support level but managed to secure a bullish closing yesterday. There is upward continuation today but the bullish movement lost momentum and currently trading below the opening level. We think the pair will bounce from 1.0800 and target 1.0900 also 1.1000 as long as there is no close below 1.0800.

today critical levels to watch:

Support: 1.0800, 1.0650

Resistance: 1.0900, 1.1000

GBP/USD

GBP/USD halted its drop before it could reach the 1.2000 – 1.2200 support area. The pair currently supported by a bullish trendline and might bounce from it. If a bullish bounce happens then traders will expect GBP/USD to target 1.2625 and SMA 200.

Today Critical level to watch:

Support: 1.2200, 1.2000

Resistance: 1.2500, 1.2625

USD/JPY

USD/JPY on the path lower below 106.70 and expected to extend its weakness toward 105.00. No bearish continuation yet at the current time. The pair continues to trade near 106.70 and waiting for a reaction. As long as there is no close above 106.70 then the pair expected to continue moving lower.

Today critical levels to watch:

Support: 105.00

Resistance: 106.70, 108.00, 109.00

AUD/USD

AUD/USD reopens its chance to target SMA 200 and the 0.6700 resistance level. The pair moved upward with strong bullish momentum yesterday and closed near 0.6500. At the current time, the bull attempting to bring the pair above 0.6500 and close above it. If the bull could close AUD/USD above 0.6500 then traders will expect further bullish pressure next week.

Today critical levels to watch:

Support: 0.6300

Resistance: 0.6500, 0.6700