USDX (USD Index)
The bull made a strong progress today in the U.S dollar index. Breakout happens above 93.00 after the bounce from 92.60 support level. If the bull could maintain bullish pressure, then we should see the index break above previous week high and target higher resistance level.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 May 2018
Technical Analysis
EUR/USD
EUR/USD closed as bearish pin bar in the previous day trading and just below the daily SMA 200. It does not take long for the bear to attack the candlestick and expose EUR/USD to the risk downside. The pair currently testing 1.1820 support level and might break easily in tomorrow trading session.
There is no conclusion yet, and traders will watch how the bull react against the test.
Today critical level to watch:
Support: 1.1820, 1.1710
Resistance: 1.1925, 1.2000, 1.2100, 1.2200
GBP/USD
Selling happened in GBP/USD and no surprises yet as the bottom range of 1.3450 – 1.3600 protected by the bull. The price bounced and currently traded in the middle of the range. There is nothing to do yet and the pair expected to continue its sideways movement between 1.3450 – 1.3600 with a bearish bias.
Today critical level to watch:
Support: 1.3500, 1.3450
Resistance: 1.3600, 1.3835, 1.4000, 1.4140
USD/JPY
USD/JPY continued its path higher and reached daily SMA 200 as expected. The pair still has potential to continue upside above the averages. However, the major question to ask at the current time is: Will the pair close above SMA 200 or below it?
A close above SMA 200 is bullish and suggest further upside in USD/JPY.
Today critical level to watch:
Support: 110.00, 109.00, 108.00
Resistance: 110.50
AUD/USD
AUD/USD failure to close above 0.7550 found rejection and bring the pair down below 0.7500. There is no reason to look for a long position at the current time. The nearest support to watch is 0.7450. Traders will stay sideline for now and wait for the pair close below 0.7450.
Today critical level to watch:
Support: 0.7450
Resistance: 0.7500, 0.7550, 0.7600