USDX (USD Index)

There is no stop to the bullish sentiment in the U.S dollar index as the index set loose above daily SMA 200. Today, there is the Fed interest-rate decision with no rate-change expected. If there is no rate-cut planned in the future then traders could expect the U.S dollar index to continue its upward movement.

On the other hand, if there is a rate-cut planned then the index might start moving lower and target SMA 200.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 27 – 31 January 2020

EUR/USD

EUR/USD bounced from the 1.1000 support level and closed as a bullish pin bar pattern yesterday. Although it is bullish, the bear decided to put pressure on the pair today and currently the pair fall below the previous day low and 1.1000. If the pair continues lower and close below both levels at the end of days then we will have major long-term bearish confirmation.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

GBP/USD stick near 1.3000 support level and might continue trade near it before the Fed interest-rate decision. Aside from the Fed, there is BOE rate decision to watch too. No clue on the next direction yet. Traders will wait for both events and Brexit to unfold before deciding the next direction.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY closed below 109.00 support level but immediately return above it yesterday. The pair hovering above the support level today while waiting for the Fed interest-rate decision. USD/JPY may continue lower and test the daily SMA 200. However, if the pair start moving higher then traders will watch 109.70 – 110.00 area again.

Today critical levels to watch:

Support: 109.00, 108.50, 108.00

Resistance: 109.70, 110.00

AUD/USD

The overall trend is bearish but taking short positions near the support level is a high-risk option, traders could take. AUD/USD holding out near 0.6750 currently. Will it bounce from the support level and target 0.6820 later? Alternatively, will it breakout and close below 0.6750 today and resume its bearish trend?

Today critical levels to watch:

Support: 0.6750, 0.6600

Resistance: 0.6800, 0.6820, 0.6900