USDX (USD Index)
Lower close of U.S dollar index in the previous day confirm the bearish pressure continuation. Traders could expect more downside in the index at least to 100 handles. Even though the index looks bearish, traders must remember long-term trend of the index is bullish.
News to watch
10.00 AM U.S Prelim UoM Consumer Sentiment, consensus reading of 97.1
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 March 2017
Technical Analysis
EUR/USD
EUR/USD upward bias continue and soon will reach the 1.0800 – 1.0825 resistance area. The price might reverse its course after touched the resistance with tolerance 20-50 pips above it. Traders who hold long position might consider scaling out of their position.
Today critical level to watch:
Support: 1.0710, 1.0640, 1.0590, 1.0562
Resistance: 1.0800, 1.0825
GBP/USD
The first hurdle in GBP/USD cleared when the price closed above 1.2300. Currently, the pair will face the resistance at 1.2388 where the flip of support to resistance happened. If the pair could close above the resistance, it will continue toward psychological resistance at 1.2500. Otherwise, no breakout means ranging movement between 1.2300 – 1.2388.
Today critical level to watch:
Support: 1.2300, 1.2230, 1.2213, 1.2200
Resistance: 1.2388, 1.2500
USD/JPY
USD/JPY failed to reach 115.90, and the pair made correction toward the broken channel. The pair should continue its test of support today, and traders will wait either break below support or bounce with bullish pattern formation.
Today critical level to watch:
Support: 112.87, 112.56, 112.00, 111.62
Resistance: 114.00, 115.90, 117.52
AUD/USD
No stop yet for the bull in AUD/USD, the pair supported at 0.7660 and used it to bounce higher. Without any change in the fundamental situation, the pair should continue higher above recent high 0.7718.
Today critical level to watch:
Support: 0.7660, 0.7625, 0.7590, 0.7550
Resistance: 0.7688, 0.7748