USDX (USD Index)
U.S dollar index stages another bullish day on Monday and reaches the resistance 94.00. However, the bullish sentiment experienced rejection and move back to its opening level. The reaction is clearly a bearish setup and might close the day as bearish pin bar.
If tomorrow we see further bearish pressure, then U.S dollar index might continue downward and trade between 93.00 -94.00 for a while.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 21 – 25 May 2018
Technical Analysis
EUR/USD
Mirroring the U.S dollar index, EUR/USD looks will close the day as bullish pin bar. The pair downward trend might come to a pause and start an upward correction. However, there is no clear strength yet, and the bull needs to prove itself before the price could move up. This week, we think 1.1820 and 1.1710 will play a vital part in next trend move.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
GBP/USD bull finally lose the ground and the pair break below 1.3450. The breakout below 1.3450 is bearish and might indicate a continuation of a bearish trend. Meanwhile, traders could use 1.3450 as resistance level to look for short position when retest happen.
Today critical level to watch:
Support: 1.3300
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY bull is working hard to distance the price above daily SMA 200 and 109.00. However, the upward pressure might diminish at the current resistance level of 111.00 and start a correction. If correction happens, then we could expect the pair test 109.00 or the daily SMA 200 before continuing further upside.
Today critical level to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
The pair did not close below 0.7500 in the previous week and provide a chance for a bounce this week. The bull does not take a long time to seize control and push the pair above 0.7500 – 0.7550 area. This is a bullish development and the sign to stay bullish on the pair. Traders could expect AUD/USD continue further upside to 0.7690 before turning down.
Today critical level to watch:
Support: 0.7550, 0.7500, 0.7450
Resistance: 0.7600