USDX (USD Index)
The bull punch through the resistance in the previous day trading. However, the bear did not let the bull hold long unto the winning. Today, the U.S dollar index took the downward path and moved down to the 92.60 broken resistance. The movement is normal after a prolonged bullish move from 90.00 area.
The index might find support at 92.60 and expected to move inside the orange box with bullish sentiment.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 7 – 11 May 2018
Technical Analysis
EUR/USD
EUR/USD hold out above 1.1820 support level, and the pair starts to make an upward correction. The correction could reach the daily SMA 200 before turning down. However, the bearish trend suggests the pair could reverse anytime lower. It is better to look for short position rather than long position under the current situation.
Today critical level to watch:
Support: 1.1820, 1.1710
Resistance: 1.1925, 1.2000, 1.2100, 1.2200
GBP/USD
The traders in GBP/USD pair looks eager to move the pair as it prints higher high and lowers low at the same day. It means breakout will happen soon. Overall, the pair traded below the daily SMA 200 which is bearish. We think the major trend will settle after the breakout of the orange box between 1.3450 – 1.3600
Today critical level to watch:
Support: 1.3500, 1.3450
Resistance: 1.3600, 1.3835, 1.4000, 1.4140
USD/JPY
It is the second time USD/JPY turn lower after the pair reached a level near the daily SMA 200. Traders took a cautious approach and not convinced yet with the uptrend in USD/JPY. Will the bear manage to reverse the pair downside and close it below 109.00 to resume the long-term bearish trend?
Today critical level to watch:
Support: 109.00, 108.00, 107.40, 107.00, 106.70
Resistance: 110.00, 110.50
AUD/USD
Possible floor established in AUD/USD after the pair moves up wildly today. The upward momentum could easily break the 0.7550 resistance and start a new short-term bullish leg in AUD/USD. Traders could use 0.7500 as a reference level to look for a long position. If break out happens, 0.7550 is the level to look for long position when retest happen.
Today critical level to watch:
Support: 0.7500
Resistance: 0.7550, 0.7600