USDX (USD Index)
The upward movement of U.S dollar index reached the daily SMA 200 and resistance trendline. The bear has entered the market when the reaction happens near the SMA 200. However, it seems the reaction only result in a small correction, and the bull still has upper hand. Today, we might see another attempt to bring the index higher by the bull and another retest of daily SMA 200.
This week, the market also will prepare for the release of job data at the end of the week.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 30 – 4 May 2018
Technical Analysis
EUR/USD
EUR/USD bounced from the 1.2070 support level, but it seems the pair under trouble. There is no much bullish strength, and EUR/USD enter the triangle range. We might see the pair move inside the triangle pattern and continue its downward movement until reached daily SMA 200 or the bottom of the triangle.
Today critical level to watch:
Support: 1.2100
Resistance: 1.2200, 1.2300, 1.2500
GBP/USD
GBP/USD bearish sentiment continues below 1.3835, and it broke below the red trendline. Without any bounce or change of direction, we will see the pair sit near daily SMA 200 or support area 1.3400 – 1.3600. Traders could look for short position near the red trendline or the 1.3835 resistance.
Today critical level to watch:
Support: 1.3600
Resistance: 1.3835, 1.4000, 1.4140
USD/JPY
The path of USD/JPY is simply up, and there is no significant resistance to watch yet. The pair has more room toward the daily SMA 200 and 110.50 resistance. Long position near current level 109.00 might result in a successful trade. A stop below 108.80 is suggested.
Today critical level to watch:
Support: 109.00, 108.00, 107.40, 107.00, 106.70
Resistance: 110.00
AUD/USD
AUD/USD bounced from the blue box support area and stuck near the level. The pair currently re-testing the area and might close below it today. Traders could wait until the pair reach the bottom of the blue box before looking for a long position.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7600, 0.7640, 0.7690