USDX (USD Index)
U.S dollar index decline finally reaches the support area and tested it. There is no conclusion yet on the next direction as the index stays inside the range. It is possible for the index to break either side. We prefer a break lower below the support area followed by a reversal and close above the area. A break is not mandatory for reversal, but the big player might use the event to trap all U.S dollar bear.
News to watch
08.30 AM U.S Core Durable Goods Orders, estimated 0.5% increase monthly.
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 March 2017
Technical Analysis
EUR/USD
The pair of EUR/USD corrected lower after it reached the 1.0800 – 1.0825 resistance area. It is expected to continue upside as long as 1.0710 support level intact. Traders might want to stay sideline for a while until further confirmation from the price.
Today critical level to watch:
Support: 1.0710, 1.0640, 1.0590, 1.0562
Resistance: 1.0800, 1.0825, 1.0872, 1.0910
GBP/USD
GBP/USD encountered its major resistance area at 1.2480 – 1.2500 and showed possible rejection from blue trendline. The pair might stay inside 1.2480 – 1.2500 area today and wait for Article 50 trigger day.
Today critical level to watch:
Support: 1.2388, 1.2300, 1.2230, 1.2213, 1.2200
Resistance: 1.2480, 1.2500, 1.2550
USD/JPY
Bounce happened in USD/JPY after the pair visit level near 110.50. The pair might continue upward to the blue trendline and test it. If the pair bounces lower, we might see it move inside the bearish red channel.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 111.62, 112.00, 112.56, 114.00, 115.90
AUD/USD
Since the rejection from 0.7688 – 0.7748 area, AUD/USD slide down and continue lower. The pair currently near 0.7625 support, if it continues lower, there is 0.7590 support level which might reverse the bearish pressure. On the upside 0.7688 – 0.7748 stays as major resistance to breaking.
Today critical level to watch:
Support: 0.7625, 0.7590, 0.7550
Resistance: 0.7660, 0.7688, 0.7748, 0.7777, 0.7800