USDX (USD Index)
U.S dollar index sticks near its daily SMA 200 and continues under pressure. The index set to lose more ground while the market is waiting for ECB press conference on the future of interest-rate in Eurozone. If ECB decides to increase interest-rate, we might see U.S dollar index tumble lower than the daily SMA 200.
Meanwhile, President Trump tax-cut plan might be well received by U.S market, but in the long-term, there is no answer yet from where the President will offset the fund used for tax-cut. If there is no other source of fund, then the government might have an issue on funding.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 28 April 2017
Technical Analysis
EUR/USD
EUR/USD stay at a high level and near the top trendline. The pair experienced profit taking today after it attempts to move higher. 1.0872 is the support to watch before ECB press conference tomorrow; the pair might move wildly after the news release.
Today critical level to watch:
Support: 1.08720, 1.0825, 1.0800, 1.0710, 1.0640
Resistance: 1.0910, 1.0960
GBP/USD
No change in the GBP/USD outlook, the pair continue its consolidation above daily SMA 200 and just below 1.2855. The pair favored moving higher which mean traders better look for long position when it is near the bottom of consolidation range.
Today critical level to watch:
Support: 1.2800, 1.2775, 1.2670, 1.2615, 1.2550, 1.2500
Resistance: 1.2855, 1.2900, 1.2934, 1.3000
USD/JPY
USD/JPY break loose above its bearish channel, the pair is moving higher toward 112.50 resistance. There is BOJ meeting which might influence USD/JPY movement, and traders might want to scale out or set a protective stop before the meeting.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.50
AUD/USD
A breakdown happens on AUD/USD daily chart. The Bear is finally able to remove the support at 0.7500 and bring the pair fairly lower. The removal of major support expose AUD/USD to more weakness, 0.7400 – 0.7420 is the next downward target.
Today critical level to watch:
Support: 0.7450, 0.7421, 0.7400
Resistance: 0.7500, 0.7550, 0.7590, 0.7625