USDX (USD Index)
Strong U.S GDP data mixed with the global world situation. The Q1 GDP number expanded by 3.2% compared to 2.2% expectation. It is an extremely strong number which helped the index to maintain Friday level inside the Thursday range. However, there is a slight weakness in today trading session and the index might start correction toward 97.50.
When the index hit 97.50, traders could start looking for long positions. China manufacturing PMI data will come into focus in today trading session.
News to watch
08.30 U.S Advance GDP q/q, forecast 2.2%
For full outlook for this week, you can follow Forex Outlook For The Week 29-3 May 2019
Technical Analysis
EUR/USD
The pair bounced from 1.1120 support level and maintain the level above it at the end of the week. Today, there is a bullish reaction which might reach 1.1185 soon. We expect the pair to continue trading between 1.1120 – 1.1185 until breakout happen. Bearish breakout is favored more than a bullish breakout.
today critical levels to watch:
Support: 1.1120
Resistance: 1.1185, 1.1200, 1.1300
GBP/USD
GBP/USD halted its drop and sloping upward at the middle of 1.2800 – 1.3000. The price might continue upward until it reached the trendline and 1.3000 resistance. Traders could prepare for short positions near both resistances when there is a strong bearish reaction.
Today Critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3125, 1.3250
USD/JPY
No breakout below SMA 200 which mean USD/JPY managed to maintain the range between SMA 200 and 112.50. The pair expected to continue its ranging movement inside the range. Traders could use the moment to apply ranging strategies.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50, 112.14, 112.50
AUD/USD
AUD/USD completed its bearish leg when it touched 0.7000 support level. Currently, a bounce happens and the price moving upward. Despite the bullish move, the trend of the pair is bearish and traders suggested to stick to the short side.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7080, 0.7160, 0.7200