USDX (USD Index)
Bullish continuation of U.S dollar index is expected, but will it make a test of broken resistance at 100.64 first, or will it continue without a test? There might be little movement in the market today as no major news releases. Expect the index move inside previous day range.
News to watch
04.30 AM UK CPI estimated 2.2% increase annually.
For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 April 2017
Technical Analysis
EUR/USD
Although the pair is at strong support, it looks like EUR/USD might continue lower and make quick reversal before it starts moving up. If the price is moving down, traders could look for long position near 1.0513.
Today critical level to watch:
Support: 1.0590, 1.0562, 1.0513
Resistance: 1.0640, 1.0710, 1.0800
GBP/USD
GBP/USD manage to bounce above 1.2388 support level. The bounce sends the pair back near the bottom of the triangle, and it might find resistance near the triangle and continue lower. Observe the price reaction to CPI news today, if the pair form bearish pattern near the triangle, it is a confirmation for short position.
Today critical level to watch:
Support: 1.2388, 1.2333, 1.2300, 1.2230
Resistance: 1.2480, 1.2500, 1.2550, 1.2615
USD/JPY
The top of bearish channel rejected USD/JPY advance. This rejection put the pair back to test 110.50 once again. There is no trigger for breakout until Australia employment news and China trade balance which is scheduled on Wednesday.
Today critical level to watch:
Support: 110.50, 110.00
Resistance: 111.00, 111.62, 112.00, 112.20, 112.56
AUD/USD
Hanging on a thin thread of line at 0.7500. AUD/USD is in a critical situation, and it could either break lower or bounce from this level to form a double bottom pattern. This week is crucial and might determine next medium – long-term trend.
Today critical level to watch:
Support: 0.7500, 0.7450, 0.7421
Resistance: 0.7550, 0.7590, 0.7625, 0.7660