Forex Technical Major Pairs analysis May 16, 2018

USDX (USD Index)

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The bull takes out 93.00 resistance in U.S dollar index and aims to move higher. Today, the index has not moved much from the opening level. Will we see further upside toward 94.00 before the week close?

News to watch

08.30 AM U.S Building Permits, forecast annualized 1.35 million permits issued in the previous month.

10.30 AM U.S Crude Oil Inventories, forecast deficit of 1.1 million barrels.

For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 May 2018

Technical Analysis

EUR/USD

EUR/USD is hovering at 1.1820 and under threat of breakout lower. The pair downward momentum still strong and it depends on the bull to defend the support level. A close below 1.1820 is a sign for bearish continuation. On the other hand, a bounce and close above 1.2000 will trigger double bottom pattern.

Today critical level to watch:

Support: 1.1820, 1.1710

Resistance: 1.1925, 1.2000, 1.2100, 1.2200

GBP/USD

GBP/USD closed in the middle of 1.3450 – 1.3600 which indicate the range intact. The pair currently pressured lower by the bear and might test the bottom of range again. Traders could look for long position when the pair hit 1.3450 but beware of the momentum. If the bearish momentum is strong, then it is better to stay sideline.

Today critical level to watch:

Support: 1.3450

Resistance: 1.3500, 1.3600, 1.3835, 1.4000, 1.4140

USD/JPY

The bull has won the battle in USD/JPY and close the pair above daily SMA 200. The closure above daily SMA 200 might indicate a change of long-term trend from bearish to bullish. If the bull could maintain a position above the averages, then we should see further buying. However, a close below SMA 200 might cancel the outlook.

Today critical level to watch:

Support: 110.00, 109.00, 108.00, 107.40

Resistance: 110.50

AUD/USD

0.7450 protected by the bull after previous day test. AUD/USD enter the lower range 0.7450-0.7500 and looks will make another test lower. Traders could look for short position near 0.7500 resistance.

Today critical level to watch:

Support: 0.7450

Resistance: 0.7500, 0.7550, 0.7600

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