Forex Sky Eye APP News: The dollar fell to a one-week low against a basket of currencies on Thursday (March 26), after data released showed an unprecedented surge in the number of people applying for unemployment benefits in the United States, with businesses across the country shutting down in an attempt to stop the spread of the coronavirus.
US market fell sharply by more than 1% to 98.24, down nearly 150 points from the day's high.
This week, the U.S. index will fall 4%, its biggest single-week decline since February 2016.
Forex market has been turbulent. Last week, the U.S. dollar index hit its biggest weekly gain since the financial crisis.
"What we are seeing is that the pressure in the money market is easing. So far, central banks' actions have been successful and the dollar shortage has been put on the agenda," said Ulrich Leuchtmann, head of foreign exchange and commodity research at Commerzbank.
After prices fluctuate significantly this month, investors may be particularly aggressive in adjusting the book balance this month and at the end of the quarter.
The Global Foreign Exchange Committee warned Thursday that as part of the process, volatility may occur in the coming trading days as market participants execute transactions that may exceed normal levels. Marshall Gittler, head of investment research at
BDSwiss Group, said in a report on Friday: "Since the surge in overseas dollar demand has been met by the Fed's latest improved currency swap quota, economic and medical fundamentals are playing a leading role."
FXDailyreport wrote an article to analyze and predict the trends of the US dollar, euro, pound, yen and Australian dollars and give operating strategies:
US dollar index
The index fell from a high near the 103.00 mark and has reached 99.40 support. Today, the index continued to test bearishly below this level, with a sharp drop to a low of 98.31 intraday. If the index continues to fall below support level , traders will need to consider continuing to bearish to SMA 200.
EUR/USD
Today, the bullish adjustment of EUR/USD hits the 200-day moving average. The pair has fallen slightly, after hitting the 1.1000 support level, which is about to be tested again now. If the pair closes above 1.1000, then next week it will trade between 1.1000 and the 200-day moving average.
In the current situation, the chances of the pair staying above this support level are higher. However, traders will not open positions at least until the weekly candlestick chart is over.
The key levels to focus on today:
Support: 1.1000, 1.0900, 1.0650
Resistance: 1.1120
pounds/USD
pounds/USD closed higher for the fifth consecutive day. It has closed above the post-Brexit lows and may expand its momentum further. However, if the pair falls below 1.2000, it is best to exit the long position. Currently, the pair is testing the 1.2200 resistance level.
The key level to focus on today:
Support: 1.2100, 1.2000
Resistance: 1.2200
USD/JPY
USD/JPY continues to adjust, and today it reaches the 200-day moving average . The pair showed a slight bullish response, but this may be just a temporary move. Currently, the US dollar index is under pressure and is testing support levels. If a bearish breakout occurs, the USD/JPY is expected to extend further below the 200 moving average.
Key levels to focus on today:
Support: 108.00
Resistance: 110.00, 111.00, 112.00
AUD/USD
AUD/USD closed above the 0.6000 resistance level, providing an opportunity for further bullishness. We think that by the end of the week, the pair may approach this level. If the pair closes below 0.6000 and has strong short momentum, then the trader has clues to short at 0.5500. There is no strong bearish closing, it is best to avoid shorting.
The key level to pay attention to today:
Support: 0.6000, 0.5500
