USDX (USD Index)
The bear was on the winning side when The Fed announce no change in interest-rate and pour the market with a more dovish outlook. However, the situation changes greatly after the EU reject Theresa May’s proposal to delay Brexit for three months. EU suggested the extension of the deadline for Brexit must not exceed 22 May.
It is bad news for the UK and the probability for hard-Brexit increased. U.S dollar index recovers all of the losses incurred yesterday. Currently, the index might form a strong bullish pattern and test 96.70 resistance by the end of this week.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 18-22 March 2019
Technical Analysis
EUR/USD
A breakout above EUR/USD bearish channel happened yesterday which might become the bullish confirmation. However, the breakout immediately receives selling reaction and EUR/USD fell back below 1.1360. If the bear closes the price below 1.1360 then we could regard current breakout as fake.
EUR/USD might continue its bearish pressure to test 1.1300 tomorrow.
today critical levels to watch:
Support: 1.1300, 1.1200
Resistance: 1.1360, 1.1400
GBP/USD
The bear mounting strong bearish pressure on GBP/USD after the fallout between the UK and EU. The probability of hard-Brexit increase sharply in the current week. We could expect the pair to continue its decline and test the bottom of the channel. A breakout below the bottom of the channel will bring GBP/USD down to test 1.2800.
Today Critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3125, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY finally moved below SMA 200 and close below the trendline. It is a bearish continuation sign. However, the pair find support at 110.50 and attempting to move back above the trendline. If the bull could close the pair above trendline or the SMA 200 then USD/JPY will cancel the bearish breakout and resume its bullish trend.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00
AUD/USD
AUD/USD completed the bullish correction when the pair tested 0.7160 resistance. It produces strong rejection from the level and the pair might close the day as bearish pin bar pattern. If the pattern triggered then we could expect a bearish continuation in the pair. At the current time, traders will wait daily and weekly close.
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200