USDX (USD Index)
U.S dollar index settled above 90.00 and opening upward scenario once again. The index might move between the two red trendlines range. Currently, it is holding near the bottom of the blue channel and waiting for trigger news. No major news releases today which mean the index might stick near the current level.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 12 – 16 Mar 2018
Technical Analysis
EUR/USD
EUR/USD stayed inside the blue channel range in the previous week and formed a new trendline which pointed downward. The bull, fortunately, managed to hold the pair from falling below 1.2300 and leaving the bounce scenario intact. If EUR/USD could bounce from 1.2300 support, then it needs to break above the black trendline to continue the bullish trend.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
GBP/USD closed above 1.3835 and avoided the breakdown in the previous week. The pair might continue traded inside 1.3835 – 1.4000 range this week. However, it is possible for the bear to push the pair down to 1.3600. Traders will continue observing the pair movement at current support 1.3835.
Today critical level to watch:
Support: 1.3835, 1.3800, 1.3600
Resistance: 1.3850, 1.4000
USD/JPY
USD/JPY bounced from 106.10 support level and put some distance from it. The pair is in short-term bullish sentiment, but there is no higher high printed on the chart yet. Overall, the medium-term trend is bearish until higher high printed. Meanwhile, traders could trade the range 106.10 – 107.00.
Today critical level to watch:
Support: 106.10, 105.50, 105.00
Resistance: 107.00, 107.40, 109.00
AUD/USD
Since the breakout above the triangle pattern in the previous week. We might have a question, Is it the time to look for a long position in AUD/USD? While it is bullish, the breakout is in early stage and need to close above 0.7875 to prove it has a leg. Otherwise, a bounce from 0.7875 followed by a close below daily SMA 200 is a strong bearish confirmation.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875