USDX (USD Index)

U.S dollar index closed previous trading day with a strong bullish leap. The index continues moving up but still below previous day high. We think there is no reason to change the outlook in U.S dollar index yet and we expect 97.50 resistance will be reached soon.

At the moment, traders might want to wait until a strong bearish pattern emerges near 97.50 or a breakout happen before placing any positions.

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 continues its downward movement steadily and without much trouble. The slowing down on growth issue and Brexit uncertainties took away the market confidence and there is no reason to be bullish yet. EUR/USD expected to continue moving lower and reach 1.1200 in coming weeks or months.

today critical levels to watch:

Support: 1.1200

Resistance: 1.1300, 1.1360, 1.1400

GBP/USD

Not much hope for GBP/USD to bounce after there is no majority in any options for Brexit vote. Today, MP will make another vote. Currently, the pair traded lower and testing 1.3000 support level. Next movement will wait for the vote result. A close below 1.3000 and the bottom of channel means bearish continuation. On the other hand, a bounce followed by a close above SMA 200 means bullish reversal.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3125, 1.3250, 1.3300, 1.3330

USD/JPY

USD/JPY closed above 110.50 and maintain the close above the level in the previous day. We have a lower test of support 110.00 before USD/JPY bounced and close the day at positive. Today, there is bullish follow through by the bull but the price has yet to move above the previous day high.

If the bullish movement continues then USD/JPY expected to target SMA 200.

Today critical levels to watch:

Support: 110.50, 110.00

Resistance: 111.00, 112.00

AUD/USD

AUD/USD path is lower after the close below the trendline. It broke the triangle pattern and no higher high printed on the daily chart. If a lower low printed on the chart then it is a confirmation to take short positions with 0.7000 as the target.

Today critical levels to watch:

Support: 0.7080, 0.7000

Resistance: 0.7160, 0.7200