USDX (USD Index)

The index range continues to shrink each day even though there is a bounce from 97.50 yesterday. No change to the outlook yet, U.S dollar index expected to continue to stick near 97.50 until results from U.S-China trade talk released. The index could move either up or down depending on the result and it is better to stay sideline for now.

News to watch

08.30 AM Fed Chair Powell Speaks, U.S PPI m/m forecast 0.2%

For full outlook for this week, you can follow Forex Outlook For The Week 6-10 May 2019

Technical Analysis

EUR/USD

EUR/USD holding out against selling yesterday, the pair supported at 1.1185 and looks will bounce from it. Despite the bullish outlook, the pair range shrinks each day and it is possible the pair will stick near 1.1185 until the end of the week. If a bounce happens then EUR/USD expected to test the top of the channel.

today critical levels to watch:

Support: 1.1185, 1.1120

Resistance: 1.1200, 1.1300

GBP/USD

GBP/USD slid below SMA 200 and closed near 1.3000 support yesterday. The pair has not broken below 1.3000 and has the chance to bounce from it. We expect GBP/USD to trade between 1.3000 and daily SMA 200 until breakout happen.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250

USD/JPY

The bearish pressure on USD/JPY has not receded yet and the pair continues its downward movement below 110.00. We might see a test on the lower support level around 109.70. If the level is broken then we should see USD/JPY extend its bearish move toward 109.00.

Today critical levels to watch:

Support: 109.00

Resistance: 110.00, 110.50, 111.00, 112.00

AUD/USD

Nothing bullish on AUD/USD yet as the pair closed below 0.7000. Today, there is bearish continuation though no strong momentum involves. Traders might want to wait until the release of trade talk result between U.S-China before jump in any positions.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200