USDX (USD Index)
No change to the analysis in the U.S dollar index yet. The index resumes it’s bullish close and manage to close higher for the sixth days. At the current time, not much movement from the opening level yet. Traders will continue to hold long positions in the U.S dollar and waiting for a major bearish reaction before switching to the short side.
Today speech by ECB president Lagarde and the Fed Jerome Powell could influence the overall market sentiment.
News to watch
09.00 AM ECB President Lagarde Speaks
10.00 AM Fed Chair Powell Testifies
For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 February 2020
EUR/USD
EUR/USD continues its bearish movement since the breakout below 1.1000. There are no bullish strategies suggested for traders. It is better to stay short for now while waiting for a bullish correction. If a bullish correction happens then traders could use 1.1000 as the level to enter short positions.
today critical levels to watch:
Support: 1.0900
Resistance: 1.1000, 1.1120, 1.1185
GBP/USD
GBP/USD moving lower but no touch on 1.2800 or SMA 200 support levels yet. The pair currently traded in the middle of 1.2800 – 1.3000. It seems the pair might start consolidation between 1.2800 – 1.3000 while traders and investors waiting for Brexit impact.
Long positions near the daily SMA 200 could be considered if the pair form a major bullish pattern.
Today Critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3125, 1.3250
USD/JPY
USD/JPY maintains the position inside the 109.70 – 110.00 range. The pair expected to put more bullish pressure on the resistance area and looking for a breakout above it. We think a breakout will happen soon and USD/JPY continues its long-term bullish trend. However, without any break and close above 110.00, it is better to avoid long positions near the resistance area for now.
Today critical levels to watch:
Support: 109.70, 109.00, 108.50, 108.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
AUD/USD slightly higher these two days and looking to make a bullish correction. If the bullish correction continues then traders could watch 0.6750 resistance as the level to take short positions. However, traders might want to consider the making of double bottom pattern two if the pair could close above 0.6750.
At the current time, short positions are preferred to long positions.
Today critical levels to watch:
Support: 0.6600
Resistance: 0.6750, 0.6800, 0.6820