USDX (USD Index)

U.S dollar index print fresh lower low in the Friday trading session but escaped a weekly close below 88.80 support level. The index expected to continue its movement inside the blue box and target the top of the range around 90.00.

News to watch

1.45 PM UK BOE Gov Carney Speaks

07.30 PM Australia Monetary Policy Meeting Minutes

For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 Feb 2018

Technical Analysis

EUR/USD

The upward movement of EUR/USD hit a roadblock in Friday trading session. The pair formed a bearish engulfing pattern at the 1.2500 resistance and indicated the start of a correction. If the pair could close below the candlestick pattern, then we might see EUR/USD hanging near 1.2300 by the end of the week.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100

Resistance: 1.2500

GBP/USD

GBP/USD claimed back level above 1.4000 and built a new bullish leg. The bullish move needs to stay above 1.4000 to continue upward. Traders could use 1.4000 handles to look for a long position, but need to be alerted if the pair closes back below 1.4000.

Today critical level to watch:

Support: 1.4000, 1.3850, 1.3800, 1.3600

Resistance: 1.4250, 1.4325

USD/JPY

The bear slice through all support level on the USD/JPY daily chart. There is no bullish reaction since the pair fell from 109.00 until it hit 106.10. The pair formed a bullish pin bar and bounced today. Long position will be a counter-trend trade. However, traders could look for a long position at current level with a stop below 105.50.

Today critical level to watch:

Support: 106.10, 105.50, 105.00

Resistance: 107.00, 107.40, 109.00

AUD/USD

The bullish move of AUD/USD reached a level near 0.8000 before reversed downside. There is no close between 0.7970 – 0.8000 which mean the resistance hold. We are expecting the correction to 0.7800 – 0.7875 area. However, as the BOA minutes of meeting loom, it is better to stay sideline and watch where the pair move next.

Today critical level to watch:

Support: 0.7875, 0.7800

Resistance: 0.7970, 0.8000