USDX (USD Index)
The attempt to reverse current bearish pressure met with another sell-off yesterday. U.S dollar index closed lower near Tuesday low and suggest further weakness today. There is not much movement yet today but we expect the index will reach 96.70 support soon.
Traders could prepare for long positions when the test of 96.70 underway. Wait until bullish candlestick pattern formed before placing positions.
News to watch
08.30 AM U.S PPI m/m, forecast 0.3% increase
Tentative – China Trade Balance, forecast surplus of 2 billion.
For full outlook for this week, you can follow Forex Outlook For The Week 8-12 April 2019
Technical Analysis
EUR/USD
EUR/USD averted bearish sell-off in the previous day and close at the bullish side. The pair currently expected to continue its upward movement and test 1.1300 – 1.1360 area. Traders could watch the area for reactions. If the pair reversed and closed with a strong bearish pattern then traders could place short positions and target fresh yearly low.
However, a bullish close above the channel and the bearish channel will change the overall outlook to bullish.
today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
Good news for the UK after the EU agreed to extend Brexit until October, 31. GBP/USD shows no reaction despite the good news. Without any movement, we expect the pair to continue moving inside the triangle pattern until breakout happen.
Today Critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3125, 1.3250, 1.3300, 1.3330
USD/JPY
The bearish pressure continues in USD/JPY as the pair continue close lower. However, it might find support at 111.00 today following the bullish bounce. If the bounce could close as bullish candlestick then USD/JPY range of movement might span between 111.00 and the daily SMA 200.
Despite the bullish bounce, we think USD/JPY still could reach 110.50.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.14
AUD/USD
AUD/USD give us more riddle as it climbs above 0.7160 and closes above it. The pair close right at the top of the bearish channel which means no breakout yet. At the current time, the pair fall at testing the broken 07160. Will AUD/USD rejected from the top of the channel and resume its bearish trend?
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200