USDX (USD Index)

U.S dollar index rejected from the 100.00 – 100.30 resistance area yesterday. The index closed significantly lower near 99.40. Currently, the index is testing the 99.40 support level, looking for a bearish breakout. If the index continues lower then the bottom of the green box and daily SMA 200 will become the target.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 18 – 22 May 2020

EUR/USD

The pair made bounce from the 1.0800 support level and closed above 1.0900. It seems the pair have confirmed the continuation of bullish movement toward 1.1000 and SMA 200. Traders who have long positions could hold the positions until the pair reach 1.1000 and daily SMA 200.

today critical levels to watch:

Support: 1.0900, 1.0800, 1.0650

Resistance: 1.1000

GBP/USD

GBP/USD bounced from the 1.2000 – 1.2200 area as expected. The pair made bullish close yesterday and there is further bullish pressure in today’s trading session. If the pair could make significant bullish close above Friday high then we will see GBP/USD launch further upward.

Today Critical level to watch:

Support: 1.2200, 1.2100, 1.2000

Resistance: 1.2500, 1.2625

USD/JPY

Not much to expect yet in USD/JPY as the pair continue consolidation inside 106.70 – 108.00. Similar to the previous day analysis, it is better waiting sideline for now or enters short positions only as USD/JPY has a bearish bias.

Today critical levels to watch:

Support: 106.70, 105.00

Resistance: 108.00, 109.00

AUD/USD

AUD/USD opened the path to continue moving further upside above 0.6500. Yesterday we have a close above 0.6500 and now we expect the pair to target SMA 200 also 0.6700 resistance. However, if the pair close back below 0.6500 then traders will prepare for the bearish scenario.

Today critical levels to watch:

Support: 0.6500, 0.6300

Resistance: 0.6700