USDX (USD Index)

We have a major bullish rally in U.S dollar index which made the “V” shape pattern on the daily chart. The index also managed to close above SMA 200 at the end of the week and suggest further upside this week. Traders will continue to hold long positions in the U.S dollar and waiting for a bearish correction to enter more long positions.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 March 2020

EUR/USD

EUR/USD closed lower at the end of the week but maintained the position above SMA 200. Traders might need a further clue on the pair’s next direction. If the pair closes below SMA 200 then it might restart its bearish trend. On the other hand, another close on the SMA 200 will help the pair to maintain its medium-term bullish trend.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185, 1.1200

GBP/USD

GBP/USD is in a freefall mode, fell sharply below the SMA 200 and soon will reach 1.2000 – 1.2100 area. This week, without any major change in the direction, traders will expect a test on 1.2000 – 1.2100 area. We expect the pair to halt its downward movement and consolidate near the area after the test.

Today Critical level to watch:

Support: 1.2100, 1.2000

Resistance: 1.2500

USD/JPY

USD/JPY reversed its bearish movement and manage to close near daily SMA 200. The pair will attempt to move above SMA 200 and close above it. Long positions after the close above SMA 200 followed by retest on the averages is a strategy, traders could take.

Today critical levels to watch:

Support: 107.00, 106.70, 105.00

Resistance: 108.00

AUD/USD

The only direction of AUD/USD is down for now. Similar to the previous analysis, there is no change to the situation and traders will continue waiting until the pair find a strong support level to bounce.

Today critical levels to watch:

Support: 0.6200, 0.6000

Resistance: 0.6400, 0.6500