USDX (USD Index)
U.S dollar index weakness brought the index down to close below 99.40. The index shows a bullish reaction near the April low but might continue its downward movement toward 98.40 and SMA 200 support levels. At the current time, traders will continue to observe the index reaction.
If the index manages to reach daily SMA 200 then traders could prepare for a possible bullish bounce.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 04 – 08 May 2020
EUR/USD
EUR/USD extended its bullish close and tested 1.1000 resistance at the end of the week. No major bearish reaction yet near the resistance level which means EUR/USD might continue its bullish movement this week. On the upside, there is 1.1000 and daily SMA 200 to watch. If the pair could climb above both resistances then EUR/USD might start a new bullish trend.
today critical levels to watch:
Support: 1.0900, 1.0800, 1.0650
Resistance: 1.1000
GBP/USD
GBP/USD rejected from the resistance 1.2625 with moderate bearish pressure. Fortunately, the bearish movement did not close below Thursday low. There is a chance for the pair to continue its upward movement and reach the next target at daily SMA 200.
Today Critical level to watch:
Support: 1.2500, 1.2200, 1.2000
Resistance: 1.2625
USD/JPY
USD/JPY reached 106.70 support level and show a bullish reaction. But the bullish reaction did not last long and the pair closed lower at the end of the week. This week, the 106.70 support level will become the main level to watch. As long as there is no major bearish close below 106.70, USD/JPY has the chance to bounce higher toward 108.00 and SMA 200.
Today critical levels to watch:
Support: 106.70, 105.00
Resistance: 108.00, 109.00
AUD/USD
AUD/USD could not maintain the positions near 0.6500 resistance level. The pair move lower with moderate bearish momentum and currently trade near the bullish trendline. This week, traders will observe the pair reaction near the trendline. Without bounce from the trendline, AUD/USD expected to start a new bearish trend.
Today critical levels to watch:
Support: 0.6300
Resistance: 0.6500, 0.6700