USDX (USD Index)

U.S dollar index upward movement stopped at 100.00 – 100.30 area as the pair closed bearish. On the Friday trading session, the index continues moving lower to test the level near 99.40. However, the test results in a bounce and the index closed near its opening level.

This week, the U.S dollar index might attempt to move further higher and retest the 100.00 – 100.30 area again. Traders will wait for either rejection or breakout from the area before placing any major positions.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 May 2020

EUR/USD

EUR/USD managed to hold out above 1.0800 last week and initially move higher. However, the upward movement lost momentum and the pair closed near its opening level. This week, the pair might continue its ranging movement between 1.0800 – 1.0900. As long as there is no breakout below 1.0800, traders could assume the pair will target 1.1000.

today critical levels to watch:

Support: 1.0800, 1.0650

Resistance: 1.0900, 1.1000

GBP/USD

GBP/USD supported near the trendline and bounce from it last week. The bounce closed inside Thursday range which means no strong bullish confirmation yet. This week, traders will observe the pair movement between the trendline and 1.2625.

If there is bearish continuation toward 1.2000 – 1.2200 then traders could seek to enter long positions on bullish reactions.

Today Critical level to watch:

Support: 1.2200, 1.2000

Resistance: 1.2500, 1.2625

USD/JPY

USD/JPY moved below 106.70 and closed below it last week. The pair is in-risk of further weakness below the level. However, at the end of the week, USD/JPY managed to close near 106.70. This week, traders will wait for a further reaction from the 106.70 resistance level. if the pair continues moving lower then 105.00 will become the target.

Today critical levels to watch:

Support: 105.00

Resistance: 106.70, 108.00, 109.00

AUD/USD

AUD/USD on the path higher after the previous week above 0.6500 resistance close. The pair has 0.6700 and daily SMA 200 as an upward target. Traders could use 0.6500 as the level to enter long positions when retests happen.

Today critical levels to watch:

Support: 0.6500, 0.6300

Resistance: 0.6700