USDX (USD Index)
It is the critical day for U.S dollar index as the upward momentum break above the daily SMA 200 and enters the yellow box range. The bullish sentiment is strong and answering the fear before next Fed meeting. The market is expecting more rate hike than planned and when The Fed answered the expectation with hawkish outlook, we might see U.S dollar index burst higher above 94.00.
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
The bear is in control, and EUR/USD pushed down to the daily SMA 200 and 1.2000 round number. Will the bull stop the drop in EUR/USD and bounce the pair higher? Traders might need to wait until the release of job data this week and The Fed interest-rate decision next week.
Today critical level to watch:
Support: 1.2000
Resistance: 1.2100, 1.2200, 1.2300, 1.2500
GBP/USD
Strong bear is on the loose in GBP/USD following the touchdown of 1.3450 – 1.3600 support area. The pair also touched the daily SMA 200 and halted the drop near the averages. The bearish pressure is extreme and it is better for traders to stay sideline for now. If the bull could bounce the pair and close as bullish candlestick, then traders could start looking for a long position.
Today critical level to watch:
Support: 1.3600
Resistance: 1.3835, 1.4000, 1.4140
USD/JPY
No change in the USD/JPY direction which is up. The pair progress higher toward the daily SMA 200 as expected and there is more room upward. Traders could wait until the pair reach the SMA 200 before deciding next position to take. Look for strong reaction near the averages, either a sharp reversal or a sharp breakout.
Today critical level to watch:
Support: 109.00, 108.00, 107.40, 107.00, 106.70
Resistance: 110.00, 110.50
AUD/USD
The only suggestion to take in AUD/USD stays sideline as the pair continue its descent. The pair falls below 0.7500, but there is hope for the bull if the day closed above the broken level. Long position near 0.7500 could be taken if a close above it happen. On the other hand, a close below 0.7500 for two days is bearish, and traders could look for short position near 0.7500.
Today critical level to watch:
Support: 0.7500
Resistance: 0.7550, 0.7600, 0.7640, 0.7690