USDX (USD Index)

U.S dollar index on track higher after the index printed a new higher high on the previous trading day. However, the higher high followed by lower close which means there will be a delay. Our outlook continues the same with 97.50 as an upward target for the index. Currently, increasing uncertainties in the global market should provide more fuel for the U.S dollar index to reach the target.

President Trump considering to announce National emergencies to seize fund for building a border wall between the U.S and Mexico. Traders and investors reacting negatively on the news and current equity market across the global market are in a pullback.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 11-15 February 2019

Technical Analysis

EUR/USD

EUR/USD attempted to move above 1.1300 but could not secure a close above it. Today, the pair slightly lower and might continue further lower. No positions suggested yet as it is almost the end of the week. A close below 1.1300 is a blow for the bull and might trigger further selling in the pair.

It is better to stay sideway in the pair for a while.

Today critical levels to watch:

Support: 1.1200

Resistance: 1.1300, 1.1360, 1.1400

GBP/USD

GBP/USD has reached 1.2800 support and completed the bearish cycle. Traders currently waiting for the pair next reaction. Will it bounce from the current support level? Alternatively, will it continue the bearish movement toward next level 1.2625?

Today Critical level to watch:

Support: 1.2800, 1.2625

Resistance: 1.3000, 1.3250, 1.3300

USD/JPY

USD/JPY rejected from the level near daily SMA 200. The bearish rejection drove the pair lower to close below 110.50. Currently, the bull attempting to bring the pair back above the level. No clue yet on the next direction. However, we think USD/JPY has more chance to reach the daily SMA 200.

If the pair continues further lower, 110.00 and the black trendline are both support levels to watch.

Today critical levels to watch:

Support: 110.00, 109.00

Resistance: 110.50, 111.00

AUD/USD

No reason to turn bullish on AUD/USD as long as the pair stays below 0.7160. If the pair continues moving upward then the resistance level might become the cap and traders could look for short position near it.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7160, 0.7200, 0.7300, 0.7330