USDX (USD Index)
U.S FOMC rate decision results in an increase of 25 bps from 1.50% to 1.75% as expected. The market reacted negatively after The Fed Jerome Powell affirm the plan to raise rate gradually. U.S dollar slides after the news and reaches the blue channel. There is a bullish reaction but still, need confirmation.
News to watch
10.30 AM U.S Crude Oil Inventories, forecast 2.6 million barrels increase
02.00 PM U.S Federal Funds Rate, forecast 1.75%
For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 Mar 2018
Technical Analysis
EUR/USD
EUR/USD boosted after the Fed, but it looks like the bull still has trouble to surpass the downtrend line. Today, the pair return to its opening level and risk further downside. As long as the pair stays above 1.2300, the bull could stay optimistic the resistance will be broken.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
The bull is winning the battle against the bear as GBP/USD head higher. However, there is a bearish reaction from the projected trendline range. If the bear could push the pair down, it is possible GBP/USD will return to trade between the two trendlines.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3835, 1.3800
Resistance: 1.4140
USD/JPY
USD/JPY finally dropped below 106.10 with strong momentum. The downward movement has not stopped yet and might print fresh low before the market close. If the bearish movement resume, then traders could expect the pair will reach 104.50 in several days.
Today critical level to watch:
Support: 105.50, 105.00
Resistance: 106.10, 107.00, 107.40, 109.00
AUD/USD
AUD/USD will become the focus as the pair produce a mixed signal. There is strong bullish candlestick formed after the bottom of triangle tested. However, as the bounce heading to daily SMA 200, there is selling done by the bear. We could say the bear took control and the closure below previous day low will resume the bearish trend.
Today critical level to watch:
Support: 0.7690, 0.7640
Resistance: 0.7750, 0.7800, 0.7875, 0.7970