USDX (USD Index)
Traders are watching U.S dollar index closely this week as the index upward movement stopped near the red trendline. There is lack of volatility in today trading session, the index move in 4 cent range only. It is a normal situation as most of the central bank around the world is on Easter holiday.
We expect the index to challenge red trendline this week and as early as today U.S market opening.
News to watch
10.00 AM U.S ISM Manufacturing PMI, estimated reading of 60.1
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 Apr 2018
Technical Analysis
EUR/USD
EUR/USD is in a similar situation as U.S dollar index. The pair is sitting near the support level and looking for a bounce. We might not see a bounce today as the market volume is thin which suggest any strong movement might not reliable. Traders will wait for momentum movement this week either bounce from the red trendline or breakout below 1.2300.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
GBP/USD is holding out above 1.4000 and slowly building upward momentum. There is no confirmation to take a long position yet as the pair need to close above previous day high. Traders who take long position near 1.4000 support level could hold the position with 1.4325 as the target.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3835, 1.3800
Resistance: 1.4140, 1.4200, 1.4325
USD/JPY
The bull is in control after USD/JPY jumped above 106.10. The pair has 107.00 – 107.40 as the resistance and might continue moving inside 106.10 – 107.40 until next direction settled. Traders could use the opportunity to trade the range with a stop below 106.10 or above 107.40.
Today critical level to watch:
Support: 106.10, 105.50, 105.00, 104.50
Resistance: 107.00, 107.40
AUD/USD
AUD/USD closed below 0.7690 which suggest the bull could not gain control and the pair should continue its downward movement. Today, the pair opened near 0.7690 and were sold by the bear. There is no clear sign of rejection yet as the pair could close near the resistance level by the end of the day. However, traders could place short position with a stop above recent high at 0.7707 or more conservative level above 0.7750.
Today critical level to watch:
Support: 0.7640
Resistance: 0.7690, 0.7750, 0.7800