USDX (USD Index)
U.S dollar index making a major breakout above 96.70 in the previous trading day and the bull follows through with further upward movement today. The index expected to continue its uptrend toward 97.50 under the current uncertain environment. Analyst in the U.S thinks we are entering a new recession and spell fear to the market.
Traders could use 96.70 as a reference level to take long positions in U.S dollar when retest happen.
News to watch
04.00 AM ECB President Draghi Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 25-29 March 2019
Technical Analysis
EUR/USD
EUR/USD drops below 1.1300 in the previous day which confirms the continuation of a bearish trend. There is no reason to take long positions until the pair return above 1.1300. Traders could use 1.1300 as the level to take short positions.
today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
The pair rejected from 1.3250 resistance but closed higher yesterday. It is currently drifted lower but still moving inside the previous day range. No clue yet on GBP/USD next direction as the sentiment could change drastically upon new Brexit news. Meanwhile, the pair technically moving between SMA 200 and 1.3250.
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY bounced from 110.00 support and closed above 110.50. The pair might have reversed its bearish trend and turn bullish. Traders could use 110.50 as the level to take long positions with a stop below 110.00. The trendline and daily SMA 200 will become an upward target.
Today critical levels to watch:
Support: 110.50, 110.00
Resistance: 111.00, 112.00
AUD/USD
A higher close happened in AUD/USD yesterday. The pair getting nearer to 0.7160 but could not touch it. Today, there is a bearish reaction which falls below the previous day low. Will AUD/USD continue its bearish trend and move below the trendline? Alternatively, will it reverse and continue upside above 0.7160 and daily SMA 200?
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200