USDX (USD Index)
U.S dollar index is searching for a bottom, and the index closed as minor bullish pin bar yesterday. Although it is a bullish candlestick, the candle formed on low impact days which is insignificant. Traders might want to expect more downside in U.S dollar index, a convincing break and pull back to shake all U.S dollar bull away.
Ideally, a break lower below 99.23 followed by close above 100 will become the indication of an uptrend.
News to watch
05.30 AM UK CPI, estimate 2.1% increase annually.
06.35 AM BOE Gov Carney Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 March 2017
Technical Analysis
EUR/USD
EUR/USD closed lower yesterday, but the pair bounces higher today after it almost touches 1.0710. The pair expected to continue its upward movement toward 1.0800 – 1.0825 with overshoot to 1.0870 – 1.0910. Long position need to wait until further confirmation above 1.0910, and bear traders could look for short position near 1.0800 – 1.0825 and 1.0870 – 1.0910.
Today critical level to watch:
Support: 1.0710, 1.0640, 1.0590, 1.0562
Resistance: 1.0800, 1.0825, 1.0872, 1.0910
GBP/USD
GBP/USD fall back below 1.2388 in the Monday trading session. The market prepares for Brexit trigger and doom in Pound Sterling. If GBP/USD continue lower from the current level, it will find support at 1.2300. The best place to look for a short position is the 1.2480 – 1.2500 resistance area.
Today critical level to watch:
Support: 1.2388, 1.2300, 1.2230, 1.2213, 1.2200
Resistance: 1.2480, 1.2500, 1.2550
USD/JPY
USD/JPY move lower and touch trendline support. This is a crucial moment for the bull, if the price manages to bounce from the current level, it might continue without stop. However, if the price break lower, we might see a flip from bullish trend to a bearish trend.
Today critical level to watch:
Support: 112.56, 112.00, 111.62
Resistance: 114.00, 115.90, 117.52
AUD/USD
AUD/USD continued its stride upward and encountered the 0.7748 resistance. Immediately after the touch, AUD/USD reversed its course of action and fall. Today, we have 0.7688 as support, and if the pair could maintain above it, traders might see the pair continue inside 0.7688 – 0.7748.
Today critical level to watch:
Support: 0.7688, 0.7660, 0.7625, 0.7590, 0.7550
Resistance: 0.7748, 0.7777, 0.7800