USDX (USD Index)

U.S dollar index drifted lower on the previous trading day and closed lower. It seems the index still has more room downward until it reaches 96.70 support. No clue yet on the next direction, it is possible the index turn higher today as Brexit uncertainties resurface. UK MP rejected Theresa May Brexit deal for the second time which means the country will turn to vote for “No deal Brexit” or “Delaying Brexit”.

News to watch

08.30 AM U.S Core Durable Goods Orders m/m, forecast increase of 0.1%

PPI m/m, forecast increase of 0.2%

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

The upward movement of EUR/USD has reached 1.1300 resistance yesterday. No bearish reaction yet from the 1.1300 – 1.1360 area which suggests traders continue waiting at the sideline. A short position is a safe option to take as long as stay below 1.1300.

Today critical levels to watch:

Support: 1.1200

Resistance: 1.1300, 1.1360, 1.1400

GBP/USD

GBP/USD might be in a big predicament after MP vote to reject Theresa May Brexit deal for the second time. The pair rejected from resistance 1.3250 and closed near the daily SMA 200. MP will vote to either to execute Brexit without a deal or delaying Brexit.

Technically, GBP/USD could fall toward the bottom of the channel if current support daily SMA 200 broken.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3125, 1.3250, 1.3300, 1.3330

USD/JPY

The close below SMA 200 might confirm the change of trend in USD/JPY. However, on the longer-term, we still have a higher high and higher low printed on USD/JPY daily chart. The pair still has the potential to continue its bullish trend. Currently, it is testing the broken SMA 200. If the pair could climb above the averages then USD/JPY will resume its bullish trend.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00

AUD/USD

Nothing bullish on AUD/USD daily chart, the pair might have bounced from the bottom of the red channel but the trend is bearish. It reversed current bullish bounce and turn lower near the blue trendline. We expect AUD/USD to continue its bearish trend and test 0.7000 soon.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7080, 0.7160, 0.7200