Forex Technical Major Pairs Analysis | May 20, 2022

USDX (USD Index)

U.S dollar index closed yesterday’s trading day with a bearish close. It could signal the start of bearish correction toward the 100.00 – 100.30 area. However, there is no bearish follow-through yet today. The index maintains the level inside yesterday’s range. Traders will wait for the bearish correction to happen and enter long positions in the U.S dollar when there is a bullish reaction from the support levels.

EUR/USD

EUR/USD moving upward and continue the bullish correction toward the 1.0650 resistance level. The pair might breakout above the resistance level and extend the bullish movement toward 1.1000 and daily SMA 200. Traders will observe the pair reaction near the resistance levels for a chance to enter short positions.

Today’s critical levels to watch:

Support: 1.0339, 1.0000

Resistance: 1.0650, 1.0800, 1.0900

GBP/USD

GBP/USD closed higher yesterday and erased all of the losses that happened in the Wednesday trading session. The pair might continue moving upward and reach the 1.2625 resistance level. If the pair could breakout above the resistance level then it could continue upward to target 1.3000.

Today Critical level to watch:

Support: 1.2400, 1.2200, 1.2100, 1.2000

Resistance: 1.2500, 1.2625, 1.3000

USD/JPY

USD/JPY started a bearish correction but the pair downward movement halted near the 23.6% Fibonacci Retracement level. If the pair continues moving lower then traders will monitor the pair reaction near the trendline and the blue box area. A major bullish reaction from the support levels will become confirmation to enter long positions.

Today’s critical levels to watch:

Support: 126.00, 125.00, 120.00

Resistance: 130.00

AUD/USD

AUD/USD climbed and closed above the 0.7000 level yesterday. The pair avoided further weakness and now might continue upward to target 0.7160 and the daily SMA 200. Traders will wait near both resistance levels for a bearish reactions. When there are major bearish reactions, traders could enter short positions.

Today critical levels to watch:

Support: 0.7000, 0.6820, 0.6750

Resistance: 0.7160

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