USDX (USD Index)

Three days drop in U.S dollar index brought it down and reach 97.50 breakout level. The index has not shown any bearish follow-through or bounce from the level today. Traders will wait for the reaction before deciding which direction U.S dollar will move next.

We have FOMC interest-rate decision which might become the catalyst for U.S dollar index next movement.

News to watch

10.00 AM U.S ISM Manufacturing PMI, forecast 55.0

02.00 PM FOMC Statement, Federal Funds Rate

For full outlook for this week, you can follow Forex Outlook For The Week 29-3 May 2019

Technical Analysis

EUR/USD

The bullish streak of EUR/USD extended to the third day and it crossed 1.1185. The pair could move higher and target the top of its bearish channel. Today U.S FOMC interest-rate decision is the news to focus. EUR/USD could either jump toward top of the channel or reverse and start new bearish leg below 1.1120.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1200, 1.1300

GBP/USD

We have mix signal in GBP/USD as the pair climbed above 1.3000 and closed above its bearish trendline. Fortunately for the bear, there was no close above SMA 200. As long as there is no close above SMA 200, traders could assume current upmove is only a correction before further bearish continuation.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250

USD/JPY

USD/JPY closed below SMA 200 in Tuesday trading session and indicate the possible start of the bearish leg. However, the bull pushes the price back above the averages today. Will we have a close above SMA 200 which lead USD/JPY back to consolidation between SMA 200 and 112.00?

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 losing upward momentum and closed the day bearish. It has not shown a clue yet for the next movement. Currently, traders will wait for FOMC interest-rate decision and speech by Jerome Powell to get a clue on U.S dollar movement and impact on AUD/USD.

Technically, as long as AUD/USD maintains closes above 0.7000 then the pair has a chance for a bounce.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200