USDX (USD Index)

No strong direction has seen on the U.S dollar index. The index continues traded sideways at the middle of 96.70 – 97.50 range and it might continue today. It is better for traders to continue to stay sideline and wait for a trigger for the next movement.

We will have a barrage of data from Europe, UK, and the U.S later today which could become the trigger for next movement.

News to watch

03.15 AM French Flash Services PMI forecast 49.8, French Flash Manufacturing PMI forecast 50.0

03.30 AM German Flash Manufacturing PMI forecast 45.2, German Flash Services PMI forecast 55.0

04.00 AM Europe Flash Manufacturing PMI forecast 48.1, Flash Services PMI forecast 53.1

04.30 AM UK Retail Sales m/m, forecast -0.3%

08.30 AM U.S Core Retail Sales m/m, forecast 0.7%, Retail Sales m/m forecast 0.9%

For full outlook for this week, you can follow Forex Outlook For The Week 15-19 April 2019

Technical Analysis

EUR/USD

EUR/USD could not make a major close above 1.1300 and the pair continue close below the resistance level yesterday. There is the top of channel resistance present above 1.1300 and the pair need both close above 1.1300 and the top of the channel to continue its upward movement.

On the other hand, traders could look for short positions when there is strong rejection from the top of the channel.

today critical levels to watch:

Support: 1.1200

Resistance: 1.1300, 1.1360, 1.1400

GBP/USD

Another flat close inside the triangle pattern happened in GBP/USD. It means we will continue flat in the pair and waiting for a breakout of the triangle pattern.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250, 1.3300, 1.3330

USD/JPY

The pair might have close above 112.00 but it is not a significant close and today we see bearish pressure brewing in the pair. If USD/JPY bearish pressure added up then we might see the pair fall toward daily SMA 200. Traders could wait near the average to enter long positions when there is a bullish reaction.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.14, 112.50

AUD/USD

Not much to expect in AUD/USD yet, the pair is testing the daily SMA 200 and maintain the position above 0.7160. The pair expected to trade between 0.7160 and the daily SMA 200 for now. Will a breakout above SMA 200 or rejection below 0.7160 happen today?

Today critical levels to watch:

Support: 0.7160, 0.7080, 0.7000

Resistance: 0.7200