USDX (USD Index)
The index rejected from 97.50 resistance and drifted lower for the third day. It seems the downward movement still has more room toward the support 96.70. Traders could prepare for long U.S dollar positions when the index hit 96.70 support. As long as the index holds out above 96.10 then the bullish trend should continue.
It is the time for Brexit vote today, the vote result should have a high impact on the market.
News to watch
05.30 AM UK Manufacturing Production m/m, forecast increase of 0.2%
08.30 AM U.S CPI m/m, Core CPI m/m, forecast increase of 0.2% respectively
Tentative: Parliament Brexit Vote
For full outlook for this week, you can follow Forex Outlook For The Week 11-15 March 2019
Technical Analysis
EUR/USD
EUR/USD trend is bearish inside the channel. Recently, the pair bounced from the bottom of the channel and headed higher to test the 1.1300 – 1.1360 area. If the area is broken then traders could see the index testing top of the channel. We think the bearish trend will continue as long as no breakout above the channel.
Today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
GBP/USD caught the bear off guard as the pair launched from SMA 200 and the support 1.3000. The pair tested resistance 1.3250 today and show a bearish reaction. We will have Brexit vote today which suggest traders stay sideline or hold minimum positions in GBP/USD.
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800, 1.2625
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY closed below daily SMA 200 but currently attempting to climb back above the averages. We will wait for the closing of daily candlestick before deciding on USD/JPY next direction. The overall trend of USD/JPY is bullish and suggest further upside in the medium-term.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00
AUD/USD
The red channel on the AUD/USD daily chart played its role and limiting the price movement outside of it. Currently, the pair bounced from the bottom of the channel and looks will test the blue trendline. We expect AUD/USD to continue its bearish trend, bouncing lower from the trendline and test 0.7000.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7080, 0.7160, 0.7200