USDX (USD Index)

U.S dollar index bounced from the 95.00 support level and formed a bullish engulfing pattern (Disregarding the tails). Today, the index supported by 96.10 and will attempt to move above the previous day high. If the index could make a higher closing level on the daily chart then there is upward potential toward daily SMA 200 and 97.50.

News to watch

07.30 AM U.S CPI m/m, forecast 0.0%

Core CPI m/m, forecast 0.2%

For full outlook for this week, you can follow Forex Outlook For The Week 09 – 13 March 2020

EUR/USD

The rejection from the 1.1500 resistance brought EUR/USD lower to close near 1.1300. The pair currently trades between 1.1300 – 1.1360 area and there is an initial rejection sign from the 1.1360 level. If the pair closes below 1.1300 by the end of the day then traders will expect further bearish correction toward 1.1185 – 1.1200.

today critical levels to watch:

Support: 1.1300, 1.1200, 1.1185

Resistance: 1.1360, 1.1500

GBP/USD

GBP/USD immediately fall below 1.3000 after the test on 1.3125. The pair resume its downward movement and manage to reach daily SMA 200 today. We have a bullish reaction after the test and GBP/USD may attempt to move higher and retest 1.3000.

Today Critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3050, 1.3125

USD/JPY

It is up to the bull to bring the pair further higher after the previous day bullish close. The pair closed above 105.00 and make a bearish retest on the support level today. Initially, it falls below the support level but at the current time, it has returned near its opening level.

If the bull could print bullish close above the previous day high then traders will expect a further bullish continuation in the pair.

Today critical levels to watch:

Support: 101.50, 100.00

Resistance: 105.00

AUD/USD

AUD/USD holding out near 0.6500 even though the pair experienced continual bearish pressure. Similar to the previous analysis, traders will wait for a bullish correction to happen before placing any short positions.

Today critical levels to watch:

Support: 0.6500

Resistance: 0.6600, 0.6662, 0.6750