USDX (USD Index)

The bullish pressure continues building in the U.S dollar index and no bearish reversal happened yet. The index has recovered losses incurred in the previous week. If the bullish pressure continues then we might see the index launch above the previous week high.

On the long-term view, we have 99.40 – 100.00 as upside target.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 27-31 May 2019

Technical Analysis

EUR/USD

EUR/USD rejected from the top of channel and closed lower for the second day. The pair bearish pressure has not recede yet and a lower low printed today. As long as no breakout above the top of channel, traders could maintain short positions. 1.1120 is the downside target for current bearish move.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200, 1.1300

GBP/USD

The support level 1.2625 reached again and the pair back to decision moment once again. Will it bounce from the support and create double bottom pattern? Alternatively, will it breakout lower and continue the bearish trend? No clue yet for the next direction. If breakout happen then traders could expect continuation toward 1.2500.

Today Critical level to watch:

Support: 1.2625, 1.2500

Resistance: 1.2800, 1.3000, 1.3125, 1.3250

USD/JPY

Not much change in USD/JPY yet, the pair has bearish bias and currently range between 109.00 – 110.00. It is possible a double bottom pattern coulb be formed and the pair start a new bullish trend. But, the pair need to avoid breakout below 109.00 to make it happen.

Traders will continue waiting for clue on USD/JPY next direction.

Today critical levels to watch:

Support: 109.00

Resistance: 109.70, 110.00, 110.50

AUD/USD

The situation is similar to previous day and no change to the outlook yet. AUD/USD might continue sideway while waiting for next direction. The trend is bearish which suggest traders to stick with short positions.

Today critical levels to watch:

Support: 0.6900

Resistance: 0.7000