Forex Technical Major Pairs analysis May 16, 2019

USDX (USD Index)

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It is the time for the bull to take control of the U.S dollar index following the close above 97.50. Today, we have a retest on the broken level and the index launch upward. At the current time, the outlook of the index will continue bullish and target the long-term 99.40 – 100.00 resistance area.

EUR/USD

The rejection from the top of the channel caused EUR/USD to move down and tested the 1.1185 support level yesterday. In the previous day, the pair formed a doji pattern which shows indecision. Today, we have an upward attempt but immediately reversed before it could reach the top of the channel. The pair currently testing previous day low and aiming for a close below it.

A close below previous day low will trigger further selling and lead EUR/USD down to test 1.1120.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

GBP/USD reach the bearish target of 1.2800 today. The pair not showing any bullish sign and might close near the level. Technically, a bounce is imminent but GBP/USD upside might be capped at 1.2860 resistance. Traders could look for a chance to enter short positions when the pair reach the level.

Today Critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3125, 1.3250

USD/JPY

USD/JPY started its bullish correction since the bounce from 109.00. The pair formed a harami pattern yesterday and the bull makes initial confirmation by moving above the pattern today. Despite the bullish pattern, we think 110.00 will become major resistance which cap the pair upward movement.

If the pair could close above 110.00 then traders could prepare for short positions near 110.50.

Today critical levels to watch:

Support: 109.70, 109.00

Resistance: 110.00, 110.50

AUD/USD

The downward movement of AUD/USD finally brings the pair to the bottom of the channel and the green trendline. There is a chance to enter a long position for short-term but it is better for traders to short whenever bullish correction happen. If a bullish correction happens then the red trendline and 0.7000 will become the target.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000, 0.7080, 0.7160, 0.7200

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