USDX (USD Index)
Today might become the day for U.S dollar as the market ready for another rate hike by The Fed. Although it already priced in, the impact on the market still unknown. There are possibilities depend on how high The Fed raise the interest rate. If they increase it higher than expected then U.S dollar index should jump, while no rate increase will make the index tumble.
Meanwhile, it is better for traders to watch the announcement and press conference held by The Fed today.
News to watch
10.30 AM U.S Crude Oil Inventories, estimated increase of 3.3 million barrels
02.00 PM Federal Funds Rate
02.30 PM FOMC Press Conference
08.30 PM, Australia Employment Change, expected 16.3k increase
08.30 PM, Australia Unemployment Rate, estimate 5.7%
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 March 2017
Technical Analysis
EUR/USD
EUR/USD in a critical point, the pair continue its consolidation inside 1.0590 – 1.0640 range. Today news might put an end to the consolidation and bring the price out of range aggressively. A trader might take this advantage by placing orders outside of the 1.0590 – 1.0640 range and ride the breakout.
Today critical level to watch:
Support: 1.0590, 1.0562, 1.0513, 1.0500
Resistance: 1.0640, 1.0710, 1.0800, 1.0825
GBP/USD
Bullish move attempted by the pair today before the major news. The bullish momentum is strong but limited below 1.2200 – 1.2230 resistance area. It is vital for the pair to close above 1.2200 – 1.2230 resistance area to overturn the bearish trend.
Today critical level to watch:
Support: 1.2130, 1.2100, 1.2000
Resistance: 1.2200, 1.2213, 1.2230, 1.2300
USD/JPY
Muted movement in USD/JPY as the pair hovering just below the 115.90 resistance level. There might be sudden price movement on the pair after it completed the silent period.
Today critical level to watch:
Support: 114.00, 112.87, 112.56, 112.00, 111.62
Resistance: 115.90, 117.52
AUD/USD
AUD/USD hovering near 0.7550 – 0.7590 as expected and it looks like the pair has a bullish bias before FOMC news. If the price break upside, it will meet H4 SMA 200 resistance.
Today critical level to watch:
Support: 0.7550, 0.7523, 0.7500
Resistance: 0.7590, 0.7625, 0.7660