USDX (USD Index)
The correction of U.S dollar index did not last long after the bull makes another upward push today. The bullish push is currently testing 94.00 resistance. There is no change to the outlook yet, the index expected to move between 93.00 – 94.00 with a bullish sentiment.
News to watch
10.30 AM U.S Crude Oil Inventories, estimate a deficit of 2.5 million barrels
02.00 PM FOMC Meeting Minutes
For full outlook for this week, you can follow Forex Outlook For The Week 21 – 25 May 2018
Technical Analysis
EUR/USD
EUR/USD stay inside 1.1710 -1.1820 range and trade according to expectation. The pair currently falls and reach 1.1710 support level. Will the bull maintain the level again and prolong the consolidation between 1.1710 – 1.1820? There is little proof the level will hold as new fresh low printed today, but we will observe where the pair close by the end of the day before deciding a breakout happen.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1925, 1.2000
GBP/USD
The bear cleared 1.3450 support level after BOE Mark Carney threw dovish comments. From the dovish comment, it seems the UK favor weak Pound sterling which raises import price. Next downward target for GBP/USD is the 1.3250 – 1.3300 support level.
Today critical level to watch:
Support: 1.3300, 1.3250
Resistance: 1.3450, 1.3500, 1.3600, 1.3835
USD/JPY
USD/JPY take a downward turn today and follow our scenario for a retest of 109.00. However, the bearish momentum is strong and could extend lower below the support level. Traders will observe the price momentum when 109.00 support tested to determine if break or bounce will happen.
Today critical level to watch:
Support: 109.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
AUD/USD secured a close above 0.7550 and got a ticket to target higher level. However, the pair needs to survive the retest of broken 0.7550 level today. If the pair could close above 0.7550, then we could expect the bounce will continue and reach 0.7640 in short time.
Today critical level to watch:
Support: 0.7550, 0.7500, 0.7450
Resistance: 0.7600