USDX (USD Index)
The U.S dollar index bounced from support level near 88.80 and headed higher this week. However, the upward movement of the index stuck near the red trendline and looked weaken at the end of the week. The index has not made higher high on the daily chart and risks further downside in the coming week.
The index needs to close above the red trendline, and 90.45 swing high before it could continue to the 91.00 resistance. Today, most of the market is in a holiday, celebrating Good Friday. We expect there is little movement in the index.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 26 – 30 Mar 2018
Technical Analysis
EUR/USD
EUR/USD is in an uptrend this week as the pair move higher above the 1.2300 support level. The upward movement encounter top of the blue channel before turned down. Currently, the pair back to its initial opening level for the week. Will EUR/USD continue to stay above 1.2300 and move between the top of the blue channel and the red trendline?
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
The pair movement is not far from expectation this week. GBP/USD stick near the black trendlines range formed in the previous week. Currently, it is testing the bottom trendline and 1.4000 support level. We expect the bull will maintain the level and continue to press the momentum upside.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3835, 1.3800
Resistance: 1.4140
USD/JPY
USD/JPY averted breakdown below 104.50 and brought the pair back above 106.10. The pair might trade between 106.10 – 107.40 until breakout happens. Traders could use the range to trade either short or long position. However, conservative traders could take a short position only as the overall trend favor bearish position. As long as the pair stays below 107.40, the bear has upper hand.
Today critical level to watch:
Support: 106.10, 105.50, 105.00, 104.50
Resistance: 107.00, 107.40
AUD/USD
AUD/USD drifted lower this week, but overall there is no strong momentum produced. The pair formed a lower low on the daily chart but stay near the triangle which means sideways trend. We expect the pair to trade between 0.7640 – 0.7690 until momentum movement happen.
Today critical level to watch:
Support: 0.7640
Resistance: 0.7690, 0.7750, 0.7800