USDX (USD Index)
The advance of U.S dollar index continues today following weaker than expected GDP data. Fear on growth rate is hard to dismiss as recent data show evidence of slowdown at a fast pace. U.S GDP come out at 2.2% vs. 2.4% expectation. U.S dollar index launch toward 97.50 and soon will reach it. There is no reason to short U.S dollar and without good news, we could expect the index to break above 97.50.
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 broke out below 1.1300 and could not reverse the bearish pressure. There is no reason to take a long position as the situation in the U.S turn pessimistic following inversion of yield and Europe also dovish on the economy. We might see EUR/USD print fresh low below 1.11760 in the coming week.
today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
Brexit might reach climax soon and the world will know what is UK and EU decision. Currently, MP has voted on options for Brexit, there is no majority on the options yet. Tomorrow, MP will hold another vote. Time is ticking and the deadline looms. GBP/USD fall today as no meaningful result today, it could fall further to the bottom of the channel if tomorrow vote results in no majority again.
Today Critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3125, 1.3250, 1.3300, 1.3330
USD/JPY
USD/JPY drifted lower and test 110.00 support today, the test results in a bounce. We could see the pair traded above 110.50 and might close the day above it. A closure above 110.50 will help USD/JPY to climb in the coming days or weeks. Traders could look for a long position around 110.00 – 110.50.
Today critical levels to watch:
Support: 110.50, 110.00
Resistance: 111.00, 112.00
AUD/USD
The pair might be ready to start its descend below the trendline. No change in the outlook and it is better to continue to maintain short positions in AUD/USD. The only reason to switch to a long position is when the pair could climb above 0.7160 and SMA 200.
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200