USDX (USD Index)

The index holding out its bullish trend and ready to extend the gain this week. But, it might start a bearish correction at the current level before continue upward. Not much clue on the global market direction at the start of this week. Traders might want to stick to the bullish side for now while waiting for global market development.

The Fed Jerome Powell scheduled to give a speech today on 07.00 PM EST

News to watch

07.00 PM Fed Chair Powell Speaks

For full outlook for this week, you can follow Forex Outlook For The Week 20-24 May 2019

Technical Analysis

EUR/USD

EUR/USD risk further downside after the close below 1.1185. The pair could slide toward 1.1120 before any major bounce possible. Traders could continue to hold short positions and add more short near 1.1185 when retest happen. Long positions could be taken near 1.1120 when there is a bullish reaction.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

No reason to switch to the bullish side yet in GBP/USD. The pair closed lower with strong bearish momentum and below the 1.2800 support level. At the start of this week, the bull return and opened the pair higher. It might push the pair toward 1.2800 and test it before settling next direction. Short positions near 1.2800 and the red trendline might be the option traders could take.

Today Critical level to watch:

Support: –

Resistance: 1.2800, 1.3000, 1.3125, 1.3250

USD/JPY

The pair projected to move lower after the retest on 110.00 – 110.50 area. At the current time, there is a bearish reaction from the area and USD/JPY move back to its opening level. If the pair could close below 110.00 then we will have a bearish continuation leg. Traders could enter a short position between 110.00 – 110.50.

Today critical levels to watch:

Support: 110.00, 109.70, 109.00

Resistance: 110.50

AUD/USD

The only change which happens in AUD/USD is from the fundamental side. PM Scott Morrison unexpectedly win the Australia election. AUD/USD opened higher today and continue moving upward. Technically we could regard this as the technical bounce from the bottom of the channel and will target 0.7000.

Traders could enter short positions when the pair tested 0.7000 and formed bearish patterns.

Today critical levels to watch:

Support: 0.6900,

Resistance: 0.7000