USDX (USD Index)
FOMC meeting results in the Fed increase interest rate by 25 bps to 1%, but the rate impact to U.S dollar is opposite than expected. The index tumbled lower below its recent bullish channel and closed below 100.64. The decline of U.S dollar index might continue today after previous day strong momentum bar. 100.36 and trendline will act as support level when the index continues lower.
In the long-term, the Fed confirmed three interest-rate hikes this year and might add more. Currently the index perchance lower but in the long term, it should move higher as the fundamental underlying support it.
News to watch
08.00 AM UK Official Bank Rate, consensus unchanged at 0.25%
08.30 AM U.S Building Permits, expected 1.26 million permits issued
U.S Philly Fed Manufacturing Index, consensus reading of 30.2
Unemployment Claims, estimated 245k benefit claimer last week
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 March 2017
Technical Analysis
EUR/USD
EUR/USD is building strong bullish momentum which is shown by three momentum bar on the daily chart. The pair expected to continue its upward movement and reach 1.0800 – 1.0825 soon.
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 movement in the main currencies against U.S dollar initiated yesterday after the Fed raise interest-rate. The increase in interest rate is already priced in by the market and result is opposite what should be happened. GBP/USD shot upward but limited at 1.2300; the pair might continue higher toward the 1.2388 resistance level.
Today critical level to watch:
Support: 1.2230, 1.2213, 1.2200, 1.2130
Resistance: 1.2300, 1.2388
USD/JPY
USD/JPY decide to move lower after interest rate decision. There is a confluence of support between trendline and horizontal support 112.50. The price might bounce higher after the support tested.
Today critical level to watch:
Support: 112.87, 112.56, 112.00, 111.62
Resistance: 114.00, 115.90, 117.52
AUD/USD
Strong up thrust happen in AUD/USD surpassing all of its nearest resistance. This bullish move brought the price once again inside its resistance area 0.7688 – 0.7748. It might move sideway inside the range and later continue upward.
Today critical level to watch:
Support: 0.7660, 0.7625, 0.7590, 0.7550
Resistance: 0.7688, 0.7748