USDX (USD Index)
U.S dollar index reaches the first target of depreciation after it broke below the support trendline. The index looks weak and might continue lower as political uncertainties in U.S growing bigger each day. If the price move down, it will target 96.30 – 96.50.
News to watch
08.30 AM Unemployment Claims expectation 240k, actual 232K
10.00 AM Treasury Sec Mnuchin Speaks
01.00 PM ECB President Draghi Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 15 – 19 May 2017
Technical Analysis
EUR/USD
EUR/USD hit 1.1160 resistance level after rallying more than 300 pips without stop. The price might stall and reverse its course, either it is a long-term reversal or temporary setback before further upside. The negative sentiment in U.S should help the pair maintain its high level.
Today critical level to watch:
Support: 1.1100, 1.1000, 1.0960
Resistance: 1.1125, 1.1160, 1.1220
GBP/USD
GBP/USD move past the 1.3000 resistance after better than expected retail sales data which came out at 2.3% vs. 1.2% increase monthly. The pair break upside and almost touch the top of its bullish channel. If it could maintain the position above 1.3000, it will have more chance for moving further upside.
Today critical level to watch:
Support: 1.3000, 1.2934, 1.2900, 1.2855, 1.2800
Resistance: 1.3070
USD/JPY
The bear brings the pair back inside the bearish channel and not need very long time to push it near 110.50. The price is in defensive as the market flight into the safe-haven asset. If there is no improvement in the U.S-Russia possible scandal in Trump presidential campaign, then USD/JPY should continue lower.
Today critical level to watch:
Support: 110.50, 109.00
Resistance: 111.00, 112.50, 113.00, 114.00
AUD/USD
The bull tested 0.7450 and found resistance. Currently, the price is moving at 0.7440, searching for an opportunity to move past 0.7450. Today close is important to watch as it will provide guidance where the price is heading to in the next trading day.
Today critical level to watch:
Support: 0.7421, 0.7400, 0.7330, 0.7290
Resistance: 0.7450, 0.7500