USDX (USD Index)
U.S dollar index continues lower into the 99.50 – 100.00 support area. The index has not shown any reversal sign and might continue lower toward the bottom of the range. If the range is broken downside, traders might find the index near 97.20 – 97.50, and it will cancel the bullish trend of the index.
News to watch
10.30 AM U.S Crude Oil Inventories, expected 1.9 million barrels increase compared to previous week.
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 March 2017
Technical Analysis
EUR/USD
EUR/USD is on the verge of breaking upside, the pair testing 1.0810 handles. If the pair continues higher, there is 1.0870 resistance which if broken will lead EUR/USD toward 1.0910 – 1.1050 area. The odds gets higher for the bullish scenario, but the long-term outlook for the pair still bearish and traders need to proceed carefully when taking a long position.
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
Finally, today the pair touched 1.2480 – 1.2500 resistance area. The price shows little rejection, but proceeding candlestick indicates more bullish strength. If the price manages to move higher than 1.2550, then traders could see the price continue higher toward 1.2670.
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
Sliding lower, USD/JPY back inside its bearish channel. The price expected to continue its downward movement toward 110.50. If the pair could not bounce from the support, it might continue lower toward the bottom of the channel.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 111.62, 112.00, 112.56, 114.00, 115.90
AUD/USD
The bearish engulfing pattern formed at the right place and best timing. The pattern is broken today with the price declining below the low of the bearish pattern. 0.7625 will become the nearest support level to test.
Today critical level to watch:
Support: 0.7625, 0.7590, 0.7550
Resistance: 0.7660, 0.7688, 0.7748, 0.7777, 0.7800