USDX (USD Index)
U.S dollar index avoided bearish close in the previous day and currently pressuring to the upside. The index is testing 100.30 resistance and looking to close above it today. If a bullish close above 100.30 happens then traders will expect the continuation of the medium-long-term bullish trend.
Yesterday, the Fed warned that the economic situation could turn the worse, and central banks around the world might need to take more measures.
News to watch
05.30 AM BOE Gov Bailey Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 May 2020
EUR/USD
EUR/USD rejected from the 1.0900 resistance yesterday. The pair currently testing the 1.0800 support level. Without any breakout of the 1.0800 – 1.0900 range, EUR/USD expected to continue its ranging movement inside the range. Current bearish movement incited by the Fed Jerome Powell comment which might have more weight on the pair.
today critical levels to watch:
Support: 1.0800, 1.0650
Resistance: 1.0900, 1.1000
GBP/USD
GBP/USD reached the 1.2000 – 1.2200 area and currently testing the support area. Same in the previous analysis, traders will wait for the opportunity to enter long positions. No bullish indication at the moment near the level, it is better to wait sideline.
Today Critical level to watch:
Support: 1.2200, 1.2000
Resistance: 1.2500, 1.2625
USD/JPY
USD/JPY managed to return above 106.70 and closed near 108.00. However, the bullish reaction seems short-lived and currently the pair has returned near 106.70. If the pair could close below the level with strong bearish close then traders will prepare for further weakness.
Today critical levels to watch:
Support: 106.70, 105.00
Resistance: 108.00, 109.00
AUD/USD
AUD/USD failed to close above 0.6500 and the outlook slowly shifts to bearish. We have a lower high printed on the chart, bear traders only need a lower low below the previous week low to continue the bearish pressure. Will the pair add more bearish pressure and breakout below the previous week low? It might happen
Today critical levels to watch:
Support: 0.6300
Resistance: 0.6500, 0.6700