USDX (USD Index)
U.S dollar index boosted from 88.80 support level after The Fed left rates unchanged. The jump after the Fed rate announcement due to the positive consensus on the economy. Currently, the Fed believes the next interest-rate hike will be in March.
Despite the bullish built-up after FOMC meeting, U.S dollar index continue subdued near the support level. There is more pressure today from the bear, and we might see the index breach 88.80 without any buying. Meanwhile, the index expected to move inside the blue box.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 29 – 2 Feb 2018
Technical Analysis
EUR/USD
EUR/USD maintain heigh after FOMC meeting and showing no sign of retracement. If the bullish pressure continues building up, we might see EUR/USD challenging 1.2500 soon. There is no reason to place short position yet in the current situation.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2500
GBP/USD
GBP/USD continue traded between 1.4000 – 1.4325 and the bounce from the bottom of the range will soon reach the top of the range. Traders could continue trade the range until breakout happens. It is better to wait for bearish setup formed near the 1.4325 resistance first before placing short position.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3800, 1.3600
Resistance: 1.4250, 1.4325
USD/JPY
USD/JPY closed above 109.00 after three days unable move higher above it. The pair currently testing black trendline and looks will close below the trendline. If the bear return and push the pair below 109.00, we might have bearish continuation toward 107.40.
Today critical level to watch:
Support: 109.00, 107.40
Resistance: 110.50, 111.00, 111.60
AUD/USD
AUD/USD correction finally reached the 0.8000 support level. It is the best place to look for a long position, but there is a possibility the downward movement might extend to 0.7970. Aggressive traders could place the long position without any confirmation near 0.8000. Conservative traders could place position after bullish setup between 0.7970 – 0.8000.
Today critical level to watch:
Support: 0.8000, 0.7970, 0.7875, 0.7800
Resistance: –