USDX (USD Index)
The index finally reached 97.50 resistance yesterday. It shows a bearish reaction from the resistance and closed near the opening level. Today, the bear managed to push the index lower below previous day low. It is possible the index will start correction toward 96.70 support level. However, if the bull could turn the index up and close above the previous day low then we might see further upward pressure to test 97.50.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 1-5 April 2019
Technical Analysis
EUR/USD
Bearish pressure in EUR/USD continue yesterday, but the bull manages to bring the pair from its daily low and close near the opening level. Today, the bull follow through by pushing the pair higher above the previous day high. If the bullish pressure continues and the bull secures a daily close above the previous day high then it is possible for EUR/USD to start new bullish leg.
Despite the bullish outlook, we think EUR/USD still has higher odds to move lower toward 1.1200.
today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
GBP/USD bounced from SMA 200 and 1.3000 even though Brexit situation continues with no agreement. The upward movement of GBP/USD might reach 1.3250. Traders suggested continuing waiting until the result from talk reached.
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
The pair stick near SMA 200 and the trendline for two days. It is currently has climbed above SMA 200 and testing the trendline. Will we see a close above both resistances and bullish continuation in USD/JPY?
Traders could use SMA 200 as the level to take long or short positions depending on the daily close of the pair.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00
AUD/USD
A bearish close on AUD/USD daily chart yesterday might be the indication the pair ready for the new bearish leg. However, the close is not a decisive one as it is near the previous week low. Today, the bull take the initiative and bring the pair higher above previous day opening level. It means all losses have been erased and it is possible for the pair to continue upward and test 0.7160 resistance.
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200