USDX (USD Index)
Analysts talk about the forthcoming of a recession on inverted yield curve incident. The inverted curve happened in 2007 just before the recession happens and the current yield curve shows the same symptom. U.S dollar index limited below 96.70 resistance and will not break the resistance today.
If the index could close above 96.70 then we could see further strengthening of the index the rest of the week.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 25-29 March 2019
Technical Analysis
EUR/USD
EUR/USD holding out at 1.3000 support and showing bounce sign. However, it might be a temporary event as ECB Mario Draghi will give a speech this week. Brexit also comes under focus, Euro group demanding the UK to reach a conclusion on a deal or no deal.
We might see major movement soon in Euro and Poundsterling.
today critical levels to watch:
Support: 1.1300, 1.1200
Resistance: 1.1360, 1.1400
GBP/USD
The overall direction of GBP/USD is upward but the situation might change drastically in the coming weeks or month. The pair currently traded between SMA 200 and 1.3250. It found support in the previous week as UK vote to delay Brexit. No positions suggested and traders better monitor the pair from the sideline.
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY on track lower after the breach of trendline on its daily chart. The pair continue downward and close near support 110.00. Today, the pair opened at 110.00 and no moving much from it. We might see further consolidation at 110.00 and possible downward continuation this week.
Today critical levels to watch:
Support: 110.00
Resistance: 110.50, 111.00, 112.00
AUD/USD
The rejection from 0.7160 brought AUD/USD down for the second day. Today, the pair was able to move below Friday low but return upside before the market close. It seems AUD/USD might make another attempt to test 0.7160. Will it reverse the bearish trend and climb above the resistance 0.7160?
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200