USDX (USD Index)
The index extends gain to eighth consecutive days and today the bull push the index further upside. However, the upward movement losing momentum and reversed. Currently, the index falls below its opening level. It seems the index ready for a correction. 96.70 will become the target of correction where the bull expected will emerge.
Today, there is a speech by Jerome Powell. We might get same dovish remark today similar to previous FOMC meeting.
News to watch
08.00 AM BOE Gov Carney Speaks
12.45 PM Fed Chair Powell Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 11-15 February 2019
Technical Analysis
EUR/USD
No bounce happened yesterday and EUR/USD slumped below 1.1300. It was a major blow for the pair as lower low printed on the chart and might be bearish continuation confirmation. At the current time, the pair just bounces from the trendline and getting near to broken 1.1300. If the bull could close the pair above 1.1300 by the end of the day then we might see EUR/USD attempt to move toward 1.1360 again.
Today critical levels to watch:
Support: 1.1200
Resistance: 1.1300, 1.1360, 1.1400
GBP/USD
GBP/USD range span between 1.2800 – 1.3000 and it is expected to test 1.2800 soon. We have the pair traded near its opening level and showing less volatility. At the current time, no change to the expectation and traders will continue to wait near 1.2800 for possible long positions.
Today Critical level to watch:
Support: 1.2800, 1.2625
Resistance: 1.3000, 1.3250, 1.3300
USD/JPY
USD/JPY climbed above 110.00 and opened the path higher. Today, the pair tested 110.50 and showing initial rejection. The day has not closed yet and it is still possible for the pair to close near 110.50 or drop below its opening level. 110.00 will become the level to focus if bearish correction happen.
Today critical levels to watch:
Support: 110.00, 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
The pair fell below 0.7160 and printed lower low on the daily chart. All indications show bearish signal and no reason to place long positions in the pair. However, today the pair making a bounce from the red trendline though it is still inside previous day range. Will AUD/USD stage rally and test 0.7160 again?
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330