USDX (USD Index)
U.S dollar index reacted near the daily SMA 200 and closed the day as bullish pin bar pattern. Today, the bull attempted to bring the index above previous day high. Initially, it succeeds, however, the bear manages to push the price lower below the high. Next week trend will depend on where the index closed.
A close above previous day high will help the bull to rally. On the other hand, a close below the high will lead to a test on 95.50 support.
News to watch
08.30 AM U.S Non-Farm Employment Change forecast 165k
Unemployment Rate, forecast 3.9%
10.00 AM U.S ISM Manufacturing PMI, forecast reading of 54.1
For full outlook for this week, you can follow Forex Outlook For The Week 28-1 February 2019
Technical Analysis
EUR/USD
The pair completed upward target at 1.1500 and printed bearish candlestick in the previous trading day. Under the current situation where the Fed pausing the interest-rate hike. We think EUR/USD bearish close is a temporary reaction only. Expect the bull will push the pair further upside in the coming week.
Today critical level to watch:
Support: 1.1400, 1.1360, 1.1300
Resistance: 1.1500, 1.1580
GBP/USD
GBP/USD might have set the short-term range between 1.3050 – 1.3125. The pair expected to trade inside the range with an upside bias. Traders could use 1.3000, daily SMA 200 and 1.3050 as levels to take long positions. We expect the pair will continue upward to test 1.3250.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250
USD/JPY
Another bearish close happens in USD/JPY and below 109.00. However, it is not a major bearish close and currently the bull attempting to bring the pair back above 109.00. If the bull could close the pair above 109.00 then traders could expect the pair to continue upward.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00, 110.50, 111.00
AUD/USD
AUD/USD has completed the bullish target at daily SMA 200 and 0.7300 – 0.7330. The pair showing a bearish reaction from the averages but we think there is more upside for the pair. It is better to stick to the long side and monitoring if the pair could close above 0.7330 or not.
Today critical level to watch:
Support: 0.7200, 0.7160, 0.7000
Resistance: 0.7300, 0.7330