USDX (USD Index)

More bullish continuation happens in the U.S dollar index. If there is no change to the current upward movement then the index will reach 99.40 – 100.00 resistance area soon. Traders will continue to hold long positions in the U.S dollar and waiting for major bearish candlestick patterns before placing any short positions.

News to watch

08.30 AM U.S Core Retail Sales m/m, forecast 0.3%

Retail Sales m/m forecast 0.3%

For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 February 2020

EUR/USD

After the close below 1.1000, EUR/USD extends its bearish close yesterday. The pair soon will reach 1.0800 and continue lower if the level could not provide support. We think the pair long-term trend is bearish and traders better avoid long positions for now until major bullish close happens.

today critical levels to watch:

Support: 1.0800

Resistance: 1.0900, 1.1000

GBP/USD

GBP/USD secured a close above 1.3000 and return inside 1.3000 – 1.3250 range. It means the pair will continue its ranging movement inside the range. Traders could look for long positions near 1.3000 when a bearish retest happens.

Today Critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY experienced rejection from 110.00 resistance and settled inside the 109.70 – 110.00 range. If the pair could continue to maintain the position inside the range then it is possible USD/JPY could continue its uptrend above 110.00. At the current time, traders will continue holding long positions and wait for further confirmation.

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 rejected from 0.6750 resistance and closed down yesterday. The closing level is inside the Wednesday range and provides traders with a neutral outlook. On the long-term outlook, the AUD/USD trend is bearish which suggests traders stick with short positions. However, if a close above 0.6750 happens then traders might want to scale out of short positions.

Today critical levels to watch:

Support: 0.6600

Resistance: 0.6750, 0.6800, 0.6820