USDX (USD Index)
No major reaction was seen on the U.S dollar index yet. It sticks near 96.70 resistance even though there was mild selling yesterday. The bull attempt to push the index upward today but no strong upward momentum happen yet. Analysts predict forthcoming of recession as yield curve becomes inverted. We might see U.S dollar index breakout above 96.70 if fear continues mounting around the slowdown of global growth.
News to watch
10.00 AM U.S CB Consumer Confidence, forecast reading of 132.1
For full outlook for this week, you can follow Forex Outlook For The Week 25-29 March 2019
Technical Analysis
EUR/USD
The pair is under bearish pressure but manage to hold above 1.1300. No breakout happen which suggest EUR/USD will try to move between 1.1300 – 1.1360. At the current time, no strong bounce from 1.1300. Traders might want to limit long position taken until strong bullish movement happen.
today critical levels to watch:
Support: 1.1300, 1.1200
Resistance: 1.1360, 1.1400
GBP/USD
GBP/USD rejected from resistance 1.3250 and drifted lower today. The uncertainties over UK Brexit might prevent traders to take long-term positions in GBP/USD. The pair expected to trade between SMA 200 and 1.3250 until breakout happen. Meanwhile, traders might want to stay sideline until lawmakers reach a conclusion on how to proceed with Brexit.
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800
Resistance: 1.3250, 1.3300, 1.3330
USD/JPY
The breakout below trendline sent USD/JPY lower to close under 110.00. It seems the bull losing the ground and set for further weakness. However, the pair stick near 110.00 the entire day yesterday. Today, there is bounce reaction from the level which has surpassed the previous day high. If USD/JPY could close the day above previous day high then it is possible for USD/JPY to climb further toward the trendline.
Today critical levels to watch:
Support: 110.00
Resistance: 110.50, 111.00, 112.00
AUD/USD
AUD/USD consolidates inside a triangle pattern. The pair bounced from the trendline yesterday and extend its gain today. Without any change in the direction, AUD/USD should reach 0.7160 and test it again. Will the trend change into bullish and AUD/USD close above 0.7160 and SMA 200?
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200