USDX (USD Index)
The bull is losing the battle in U.S dollar index after the close below 88.80 support level. However, the hope still present today if the bull could push the index back above 88.80. Will the index settle inside the blue box again at the end of the week?
The U.S non-farm employment data today will become the driver for movement in the market.
News to watch
08.30 AM U.S Non-Farm Employment Change, forecast 181k increase
U.S unemployment rate expected to stay unchanged at 4.1%
For full outlook for this week, you can follow Forex Outlook For The Week 29 – 2 Feb 2018
Technical Analysis
EUR/USD
EUR/USD closed above 1.2500 handles the first time and suggest more upside on the card. However, the bear might return to control the pair before U.S non-farm employment data today. Traders might want to wait for confirmation from the data before placing any position.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2500
GBP/USD
This week upward movement of the pair almost reached the top of the range. There is no change to the outlook yet, GBP/USD expected to continue moving sideways inside 1.4000 – 1.4325 range. We might see the pair close near the top of the range by the end of the week.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3800, 1.3600
Resistance: 1.4250, 1.4325
USD/JPY
Is it the time to place long position in USD/JPY? The question might pop into our mind as the pair move above the trendline. Despite the bullish movement, traders might want to stay cautious as USD/JPY is in short-term bearish trend and it needs to print higher high first to change the trend.
The best setup to look is the short position near 110.50.
Today critical level to watch:
Support: 109.00, 107.40
Resistance: 110.50, 111.00, 111.60
AUD/USD
AUD/USD showed a first bullish reaction from the 0.8000 resistance turned support level and closed at 0.8040. Unfortunately, the bounce is short-lived and the pair back down to test 0.8000. Currently, the pair continues under pressure and almost reached 0.7970. Traders could continue to watch for long position between 0.7970 – 0.8000 and observe The Fed Non-farm employment data today.
Today critical level to watch:
Support: 0.7970, 0.7875, 0.7800
Resistance: 0.8000,