USDX (USD Index)
The upward movement of the U.S dollar index stopped in the previous trading day. We have a bearish close and there is bearish follow-through today. Will the index start a bearish correction toward the 98.25 support level?
If the index reaches 98.25 support level then traders could start looking for long positions when there is a bullish reaction.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 February 2020
EUR/USD
EUR/USD halted its drop yesterday and formed a bullish candlestick close. The pair found support at 1.0900 and might start a bullish bounce from it. However, there is no movement above the previous day high yet. Without a close above the previous day high, traders might want to stay short.
We think current bullish bounce might be temporary as there is more case of coronavirus across the world
today critical levels to watch:
Support: 1.0900
Resistance: 1.1000, 1.1120, 1.1185
GBP/USD
GBP/USD continues higher in today’s trading session and soon will reach the 1.3000 resistance. The pair expected to range between 1.2800 – 1.3000 for now and trading sideline until breakout happens. Traders could apply ranging strategies for now.
Today Critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3125, 1.3250
USD/JPY
USD/JPY consolidates inside 109.70 – 110.00 range and showing us no breakout from the range yet. The pair currently making a bullish attempt and surpass the 110.00 resistance. If the pair could close above the 110.00 resistance with strong bullish momentum then traders could expect further upside toward 110.50 – 111.00
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 extends its bullish pressure and reached the 0.6750 resistance today. The pair might reverse its direction near 0.6750 and start moving lower. However, it is also possible for AUD/USD to continue its upward movement and target 0.6820.
If the pair closed above previous swing high around 0.6775 then AUD/USD will form a double bottom pattern. Further confirmation of the pattern could reverse the current trend from bearish to bullish.
Today critical levels to watch:
Support: 0.6600
Resistance: 0.6750, 0.6800, 0.6820