USDX (USD Index)
U.S dollar index closed below 96.70 in the previous week and could not return above the level. The bearish pressure expected to continue on positive development between U.S-China trade talk. Recently, President Trump postpones tariff deadline on 1 March as he and China’s President Xi Jinping will meet in a coming month.
We expect the index to move between 96.10 – 96.70 into March.
News to watch
05.00 BOE Gov Carney Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 25-1 March 2019
Technical Analysis
EUR/USD
The pair consolidated inside 1.1300 – 1.1360 last week and expected to continue its consolidation this week. Traders could use the moment to trade the range with a bullish bias. The upward target if EUR/USD could surpass resistance 1.1360 is the top of the channel.
Today critical levels to watch:
Support: 1.1300, 1.1200
Resistance: 1.1360, 1.1400
GBP/USD
GBP/USD maintains the close above daily SMA 200 and this week the pair open higher. We expect a bounce higher in the pair with 1.3250 as a target. Traders could look for a long position near SMA 200 and support 1.3000. However, nearing Brexit day might provide us with surprise so it is better to stick with small size positions.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250, 1.3300
USD/JPY
Not much change in USD/JPY analysis as the pair traded inside 50 pip range. The consolidation should continue this week. If USD/JPY could move higher then traders could use daily SMA 200 as a target. On the other hand, the downward movement might find support at 110.00 or the trendline.
Today critical levels to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
The pair rejected from 0.7160 resistance but no follow through by the bear yet. In fact, the pair closed higher on Friday and the bull push it higher today. We have another test on 0.7160 today and there is no reaction yet. If the bull could close the pair above 0.7160 then AUD/USD might reverse current bearish sentiment.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330