USDX (USD Index)

U.S dollar index dropped after it tested the level near 97.50 at the end of the week. A national emergency announcement by President Trump provides some fuel upside for the index. However, the market seems more focus on U.S-China trade talk. There is hope both parties will reach a deal. This week, traders and investors also will focus on FOMC minutes of the meeting.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 18-22 February 2019

Technical Analysis

EUR/USD

The pair reversed at the end of the week and formed a bullish pin bar pattern. There is follow through by the bull and currently EUR/USD trading above 1.1300. If the pair could continue its bullish movement then we could expect EUR/USD will reach 1.1360 this week.

As the pair formed lower low on the chart, the trend still favors downward movement so it is better for traders to hold less long positions.

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

Today critical levels to watch:

Support: 1.1300, 1.1200

Resistance: 1.1360, 1.1400

GBP/USD

A bounce happened at 1.2800 before the week closed. The bounce is expected and currently halfway from reaching 1.3000. We expect the pair to reach 1.3000 and the daily SMA 200. Next direction will depend on the pair reaction at the resistance.

Today Critical level to watch:

Support: 1.2800, 1.2625

Resistance: 1.3000, 1.3250, 1.3300

USD/JPY

USD/JPY closed near 110.50 last week which show no breakout yet. The pair rejected from daily SMA 200 and might have range between 110.00 – SMA 200 this week. Short position near SMA 200 and long position from 110.00 or 110.00 might be good options to take.

Today critical levels to watch:

Support: 110.00, 109.00

Resistance: 110.50, 111.00

AUD/USD

Optimism on trade talk between U.S-China helped AUD/USD to recoup part of its losses. Currently, the pair has reached 0.7160 and will wait for the next direction. We expect rejection from the resistance level. However, the pair might continue upward if the trade talk progress between U.S-China resulted in a deal.

At the current time, it is better to wait and see.

Today critical levels to watch:

Support: 0.7000

Resistance: 0.7160, 0.7200, 0.7300, 0.7330