USDX (USD Index)
U.S dollar index majorly bearish at the end of the previous week and expected to continue its bearish move. However, on Monday trading session fear clouded the market as trade war situation between U.S-China turn to worse. Most equity instruments pullback across the world but we did not see a bounce in U.S dollar index.
Because of the situation, the probability of the index to break lower has not changed. This Wednesday, China officials will come to trade talks in Washington to negotiate before Friday tariffs deadline.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 6-10 May 2019
Technical Analysis
EUR/USD
The pair manage to stay above 1.1185 and might be ready for further bullish movement toward the top of the channel. No change to the outlook yet and traders must remember before taking any positions, the pair have not left its bearish channel.
today critical levels to watch:
Support: 1.1185, 1.1120
Resistance: 1.1200, 1.1300
GBP/USD
GBP/USD retreated in the previous trading day and closed below 1.3125. Despite the bearish close, the pair stick near the bottom of the channel. Today, the bull make attempt to push the price back above 1.3125. Will we see a close above the level and continuation of the current bullish rally?
Today Critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3125, 1.3250
USD/JPY
USD/JPY move below 111.00 and tested 110.50 in the previous trading day. The pair make another bearish attempt today and looks will test 110.50 support level soon. Without any change in the direction, we should see USD/JPY continue its downward movement to test 110.00.
Today critical levels to watch:
Support: 110.50, 110.00
Resistance: 111.00, 112.00, 112.50, 112.14, 112.50
AUD/USD
A lower low printed below 0.7000 yesterday but AUD/USD avoided breakdown below the support level. The pair continues its consolidation near the level and might not move much from it yet. Traders will wait for the development of trade talks between U.S-China this week.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7080, 0.7160, 0.7200