Forex Technical Major Pairs analysis April 16, 2018

USDX (USD Index)

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U.S dollar index was on the backfoot in the previous week. The index lost value from the top of the blue box but found support around 89.60. The bounce is weak but has an opportunity to continue this week and let U.S dollar index secure back level near the top of the blue box.

If the index continues upward this week, then we could expect the index will hit the top of downward channel soon.

News to watch

08.30 AM U.S Core Retail Sales, estimate increase of 0.2% MoM, Retail sales estimate increase of 0.4% MoM.

09.30 AM Australia Monetary Policy Meeting Minutes

For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 Apr 2018

Technical Analysis

EUR/USD

EUR/USD reclaim the level above 1.2300 and stick above it in the previous week. There is no clue, yet the pair will continue its upward movement of starting a new bearish challenge below 1.2300. Traders could use 1.2300 as a proxy level for next movement.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100

Resistance: 1.2500

GBP/USD

GBP/USD bull continue its winning streak and snatch sixth bullish candlestick in the previous week. However, the last candlestick formed looked weak and categorized as a pin bar. This week, the bear might come into the market and start pushing the price down if there is price close below the Friday candlestick low.

Today critical level to watch:

Support:  1.4200, 1.4140, 1.4000

Resistance: 1.4325

USD/JPY

After the bullish momentum breakout above 107.40, the market thought USD/JPY has been broke through the resistance. Unfortunately, the bull is not present, and the bear pushes the pair down to close below 107.40. It is a strong bearish indication, and the bear might return in control to test 106.70.

The breakout below 106.70 is strong confirmation the bearish trend will continue. Meanwhile, the bull needs a close above 107.40 to cancel the bearish outlook this week.

Today critical level to watch:

Support: 107.00, 106.70

Resistance: 107.40

AUD/USD

AUD/USD reached the bullish target at the daily SMA 200 and experienced profit taking. The profit-taking looks healthy and no confirmation the trend has changed to bearish yet. This week, 0.7750 will become the focus of traders. A close below 0.7750 will trigger a bearish continuation to test the blue trendline. On the other hand, an upward bounce from the 0.7750 will help the bull to test SMA 200 again.

Today critical level to watch:

Support: 0.7750, 0.7690, 0.7640

Resistance: 0.7800

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