Daily Forex Technical Major Pairs analysis March 20, 2017

USDX (USD Index)

U.S dollar index ended the week on a bearish note, and the rejection from 102.00 formed possible shoulder-head-shoulder pattern. This week, the bearish pressure expected to continue and reach the 99.50 – 100.00 support area. Bounce from this area is critical for the index to maintain its long-term bullish view.

News to watch

08.30 PM Australia Monetary Policy Meeting Minutes

For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 March 2017

Technical Analysis

EUR/USD

Disintegration has become the top topic in European region after the UK voted for Brexit. Countries in Europe are choosing their leaders, and this will decide whether they stay inside Eurozone or follow the UK. Fortunately, Netherland presidential won by parties which prefer to remain in Eurozone.

ECB also mentioned the possibility of a rate hike after unemployment and inflation numbers improved. This is bullish and will put bullish pressure on Euro. Meanwhile EUR/USD moving near its critical resistance at 1.0800 – 1.0825. The pair might continue further above it and touch 1.0872. If ECB decides to raise interest rate this year, EUR/USD map might change radically, and traders will not see EUR/USD at parity.

Today critical level to watch:

Support:  1.0710, 1.0640, 1.0590, 1.0562

Resistance: 1.0800, 1.0825, 1.0872

GBP/USD

GBP/USD closed the week above 1.2388 horizontal resistance. The pair has moved up in three consecutive days and might continue in the coming week. Traders could observe 1.2480 – 1.2500 area for short position when bearish pattern emerge.

Today critical level to watch:

Support: 1.2388, 1.2300, 1.2230, 1.2213, 1.2200

Resistance: 1.2480, 1.2500, 1.2550

USD/JPY

USD/JPY move lower and touch 112.50 support level. The price has not touched the blue trendline yet which indicate more downside this week. If the price could maintain its position above 112.50 at the end of the week, traders might see the pair start moving up.

Today critical level to watch:

Support: 112.56, 112.00, 111.62

Resistance: 114.00, 115.90, 117.52

AUD/USD

We have renewed the map in AUD/USD to eliminate noise. On the daily chart, we have a momentum bar formed from 0.7550 and close at 0.7708. This momentum bar is changing the game in AUD/USD and demand continuation upside. This week, traders might see the price blasted above 0.7748 resistance.

Despite the promising outlook on AUD/USD, 0.7750 – 0.7800 is a large resistance level to overcome (2016 high). The long position should be taken with careful calculation.

Today critical level to watch:

Support: 0.7688, 0.7660, 0.7625, 0.7590, 0.7550

Resistance:  0.7748, 0.7777, 0.7800

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