USDX (USD Index)
Not much change in the U.S dollar index, and it looks like the bull keeps silent above the red trendline. If there is strong upward movement from the trendline, then U.S dollar index expected to continue its bullish move toward 91.00 resistance and the top of the blue channel.
News to watch
04.30 AM UK Services PMI forecast reading of 53.9
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 Apr 2018
Technical Analysis
EUR/USD
EUR/USD ready to test the bottom of blue trendline soon after it continues to move lower below 1.2300. There is no change in the outlook. After the pair reaches the bottom of the channel, it will either break lower and target 1.2070, or it could bounce and target the top of the blue channel.
Traders could look for a long position with a tight stop, assuming EUR/USD will continue the bullish trend.
Today critical level to watch:
Support: 1.2200, 1.2100
Resistance: 1.2300, 1.2500
GBP/USD
GBP/USD closed higher on the previous day, but not enough to move above the black trend line. The pair might continue the sideways movement above 1.4000 and wait for a trigger for next movement. The pair slightly lower in today trading session before UK PMI data. Expect some movement when the PMI data released.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3835, 1.3800
Resistance: 1.4140, 1.4200, 1.4325
USD/JPY
The upward movement of USD/JPY continues today as the pair enter 107.00 – 107.40 range. There is no rejection yet from the bear, and it is possible for the bull to push further upside and close above 107.40. If the bull could close the pair above 107.40, we might see the end of the medium-term bearish trend.
Today critical level to watch:
Support: 107.00, 106.10, 105.50, 105.00, 104.50
Resistance: 107.40
AUD/USD
The bull manages to close AUD/USD above 0.7690, but the bullish advantage quickly erased by the bear. Currently, the pair is testing the 0.7690 support. If the bull could not hold position above the support level, then we expect breakdown will happen, and AUD/USD continues its bearish trend toward 0.7640.
Today critical level to watch:
Support: 0.7690, 0.7640
Resistance: 0.7750, 0.7800