USDX (USD Index)

U.S dollar index path is upward and there is no change to the bullish outlook yet. However, the index stuck near the previous month high. If the bull could not breakout above the high and continue stall near it then it is possible the index will reverse and start moving lower.

News to watch

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

Technical Analysis

EUR/USD

EUR/USD is mostly flat today near its opening level. There is bullish attempt but the resistance 1.1185 prove its strength. At the current time, we expect EUR/USD to maintain its bearish trend and start moving down soon. This week, we have a bearish target at 1.1120 and traders could use the resistance 1.1185 and the top of the channel to take short positions.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

GBP/USD rejected from the resistance 1.2800 and drop further lower today. The pair reach its second bearish target at 1.2625 before bounce upward. We might have the pair closed near its opening level and formed a bullish pin bar pattern. But, the overall trend is bearish and traders might want to avoid long positions for now. Meanwhile, short positions are best taken near the 1.2800 resistance.

Today Critical level to watch:

Support: 1.2625

Resistance: 1.2800, 1.3000, 1.3125, 1.3250

USD/JPY

USD/JPY touchdown at the resistance 110.50 in the previous day but provide us with no breakout above the level. Today, the bear seize the control and bring USD/JPY lower. It is not a significant bearish movement and it is possible for the bull to reenter the market and push USD/JPY higher above 110.50.

Meanwhile, the pair might trade between 110.00 – 110.50 until breakout happen.

Today critical levels to watch:

Support: 110.00, 109.70, 109.00

Resistance: 110.50

AUD/USD

AUD/USD could not lift itself from the bottom of the channel and the pair might continue its downward movement. At the current time, there are no positions suggested and traders will continue to monitor the pair movement at the bottom of the channel.

Today critical levels to watch:

Support: –

Resistance: 0.6900, 0.7000