Daily Forex Outlook 22 March 2018

GBPUSD

Bank of England Policy Summary Today

The Pound rallied late on Wednesday and closed to 1.4150 versus the U.S Dollar. The Bank of England will soon issue their Monetary Policy Summary. The British currency is well within its mid-term range and traders may believe it has an opportunity to add value in the days to come. Breaking above the 1.400 level was important from a technical aspect, because not only did we break above a downtrend line, but we also broke above a major round number. Cable traders will definitely be looking to add to their long positions especially as the Federal Reserve came across dovish on their monetary policy statement.

Price has currently bounced off of the 23 Fibb level and will look to correct itself over the next few hours. If price stays above the 1.40 level this week the bulls could very well take full control next week.

EURUSD

Euro Reacts Immediately to U.S Fed Hike

The Euro reacted immediately to the rate hike and outlook from the U.S Federal Reserve – rallying past the 1.2360 level. The Euro is near 1.2360 versus the Dollar. Today on the economic calendar we have Manufacturing data from the European Union.  The U.S has some important data out today in the way of jobs report and the Euro will be more influenced by Dollar  sentiment. On a technical basis I believe price will reverse for today price action and traders should keep an eye out on those levels.

a Break out of the daily triangle pattern could see price test February highs and on the flip side, if data doesn’t produce any magic for the euro we could see it fall back down to the 1.2180 level.

AUDUSD Technical Analysis

The Australian dollar drifted a bit lower during trading on Wednesday as we await the Federal Reserve monetary policy statement, something it will obviously move the US dollar going forward. Currently, it looks as if the Aussie is going to try to reach towards a major uptrend line.

AUDUSD bounced off and retraced from the big round number 0.77800 after good U.S data produced today, which saw price ally off of support level at 0.77600. Price is currently still trading within the descending wedge pattern on the daily time.

USDJPY

Yen near Important Support

The Yen got stronger and is trading 105.75 against the U.S Dollar. The Japanese currency is near important support. . Manufacturing data from Japan published earlier was slightly weaker than expected. With the U.S expected good data today there could be a third bounce off support. This is critical for this pair as a close below support could mean the end of dollar against the yYen

USDCAD

The Loonie got rejected at a key resistance level ( 1.3103 region ) near the top of the ascending channel. After a small pull back today on this currency pair we have a hammer printing on the daily frame which could signal the bulls are coming back into play. The stochastic are still pointing to over bought signals so tomorrows daily close will be significant going forward for the next couple weeks.

NZD/USD

TECHNICAL ANALYSIS

The New Zealand Dollar rebounded against its US counterpart after meeting chart support, however the dominant trajectory continues to favor weakness. After NZDUSD established its double top near the 0.74 region it has been dropping slowly in a sideways choppy range

From here, a daily close above resistance marked at 0.7260 which will target the 0.7355-63 area (March 13 high, channel top). Alternatively, a break of the 38.2% Fibonacci expansion at 0.7140 would also pierce the channel floor, marking down trend acceleration and exposing the 50% level at 0.7048.

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