USDX (USD Index)

U.S dollar index finally tumbles below 97.50 support level and the bear follows through by pushing the index lower today. It seems we will have a close below the support level and bearish continuation in the coming week. Traders could prepare to short U.S dollar in the coming week when the index making correction toward 97.50.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 6-10 May 2019

Technical Analysis

EUR/USD

EUR/USD bounced from 1.1185 and currently testing the top of the channel. It seems the pair might close near the top of the channel and continue testing it next week. Currently, the favored scenario is bullish breakout while the U.S dollar index making deeper correction lower. In the coming week, it is possible for EUR/USD to hit 1.1300.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1200, 1.1300

GBP/USD

No breakout below 1.3000 and GBP/USD maintained the level above it. The pair might settle between 1.3000 and daily SMA 200 this week. In the coming week, traders could expect ranging movement between 1.3000 and SMA 200.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250

USD/JPY

No stop to USD/JPY bearish movement yet as the pair makes lower low below previous swing low of 109.71. The pair attempted to move higher today above 110.00 but if face rejection from the level. Without any change in the current sentiment, then we could expect USD/JPY to continue lower toward 109.00.

Today critical levels to watch:

Support: 109.00

Resistance: 110.00, 110.50, 111.00, 112.00

AUD/USD

AUD/USD direction is hard to guess as the pair continue to stick near 0.7000 and might close near it at the end of this week. Next week, the pair might continue its consolidation and wait for the next direction.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200