USDX (USD Index)
U.S dollar index rejected from 94.00 resistance and formed a bearish pin bar formation. The pattern is bearish and should lead to a correction toward 93.00. However, the bull does not ready to give up yet and push the index up today. It is only a matter of time the bull will run out of fuel and start moving down.
It is better to wait until the index reaches a level near 93.00 to look for a long position.
News to watch
05.00 AM UK Inflation Report Hearings
For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 May 2018
Technical Analysis
EUR/USD
EUR/USD bounced from a level near 1.1710 and formed a bullish pin bar pattern. The pattern is a strong reversal pattern and might drive the pair up above 1.1820. Today, there is no breakout above the high of pin bar yet. Traders will wait until the close of the day to see whether EUR/USD could close above previous day high or the 1.1820 resistance.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
GBP/USD slipped below 1.3450 and under threat of further bearish pressure. Today, the price moves up near the breakout level and show no reaction yet. If the pair bounced lower and closed below previous day low, then it is time to go full short toward 1.3300. On the other hand, a close above 1.3450 is a sign to go long.
Today critical level to watch:
Support: 1.3330, 1.3300
Resistance: 1.3450, 1.3500, 1.3600
USD/JPY
No change to the USD/JPY track yet which us up. The pair closed the day higher on Monday and could continue higher in the coming days. We still expect the pair to make correction toward the 109.00 and daily SMA 200 level before USD/JPY continue higher.
Today critical level to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
Monday is the winning day for the bull after AUD/USD closed above 0.7550 for the first time since the end of April. The bull does not let the opportunity goes away and push the pair higher. We could see possible temporary bottom formed and the pair looks will target 0.7640 – 0.7690 before turning lower.
Today critical level to watch:
Support: 0.7550, 0.7500, 0.7450
Resistance: 0.7600, 0.7640, 0.7690