USDX (USD Index)
Bearish reversal on the U.S dollar index gained traction and we see sharp decline today. The index reached 97.50 broken resistance where it projected will find support. No bullish reaction from the level which means traders better continue waiting for either sharp breakout lower or strong bullish bounce.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 29-3 May 2019
Technical Analysis
EUR/USD
Despite the bounce from 1.1120 which followed by a bullish correction, we think the pair still in a bearish trend. In several days, it seems the pair will reach the top of the bearish channel and make a test on it. As long as the bear maintain the level below the channel and no breakout above 1.1300 then EUR/USD expected to continue its bearish trend.
today critical levels to watch:
Support: 1.1185, 1.1120
Resistance: 1.1200, 1.1300
GBP/USD
GBP/USD caught bear traders by surprise today as the pair jumped above 1.3000. The pair make double checkpoint as it touches 1.3000 and SMA 200. In coming days, it is possible that the pair could continue higher and reverse the current bearish trend. SMA 200 is the key and might become a tough level to start looking for short positions when strong bearish pattern formed.
Today Critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3125, 1.3250
USD/JPY
USD/JPY finally drop below SMA 200 and looks will close the day below it. The closure below SMA 200 should trigger further selling toward 111.00. The pair might consolidate between 111.00 and SMA 200.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50, 112.14, 112.50
AUD/USD
The upward momentum slowly decreases in AUD/USD. The pair might form a spinning top pattern which is indecision pattern. Nothing to do at the moment, the previous bearish leg has strong momentum and current bullish reaction might be temporary bounce before further selling.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7080, 0.7160, 0.7200