USDX (USD Index)

U.S dollar index has not tested 97.50 resistance but the index already fell in the previous day. It has strong downward momentum and might be able to push the index down to test 96.70 support. At the current time, traders could ride the bearish movement and wait for long positions near 96.70. However, it is still possible for the index to reverse and close the day on the positive side. A bullish close will cancel the overall bearish outlook and suggest a breakout above 97.50.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 8-12 April 2019

Technical Analysis

EUR/USD

EUR/USD jumped on Monday trading session and closed above the previous weekly high. It is a bullish confirmation and the pair might continue its upward movement toward 1.1300 resistance. Despite the bullish outlook, the overall trend of EUR/USD is bearish and traders might want to treat current bullish movement as correction move.

Short position near 1.1300 or the top of the channel is the favored strategy.

today critical levels to watch:

Support: 1.1200

Resistance: 1.1300, 1.1360, 1.1400

GBP/USD

GBP/USD still trapped inside the triangle pattern while the deadline for Brexit deal is set on April 12. We are getting near to the deadline and should see a breakout soon. At the current time, it is better to continue sideways.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250, 1.3300, 1.3330

USD/JPY

USD/JPY finally rejected from the trendline and SMA 200 before it could reach 112.00. The pair still has the opportunity to reverse current bearish reaction and close above SMA 200. A closure above SMA 200 will confirm further bullish movement toward 112.00. On the other hand, a close below Monday low will trigger sell-off and new bearish leg.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.14

AUD/USD

The range between 0.7050 – 0.7100 broken and AUD/USD add gains toward 0.7160. There is no reaction yet near the resistance. It is better to stick to the short side because of the cluster of resistances at the current level. We have trendline, 0.7160, and SMA 200 as resistances to watch. However, a breakout and close above SMA 200 will overturn the bearish trend.

Today critical levels to watch:

Support: 0.7080, 0.7000

Resistance: 0.7160, 0.7200