USDX (USD Index)
The index bounced up from 88.80 support and reach the top of the blue box today. There is no touch on the 90.00 level yet, and we might see it soon. Chinese traders still out of the market on Chinese New Year which left the market with less volatility.
Overall, the market is waiting for FOMC meeting this week, the release of UK inflation outlook, and ECB meeting.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 Feb 2018
Technical Analysis
EUR/USD
U.S dollar index bounce means the opposite for EUR/USD. The pair is moving weakly at the beginning of this week and continue its correction toward 1.2300 today. Traders will watch FOMC meeting this week followed by ECB meeting. The support level 1.2300 might hold out and turn the pair higher.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
GBP/USD return above 1.4000 convinced traders that the bull trend has not finished yet. Today, there is a test on 1.4000, and there is the possibility of bullish pin bar formation. Traders could place long position at current level with a stop below 1.3800 for a long-term trade.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3800, 1.3600
Resistance: 1.4250, 1.4325
USD/JPY
USD/JPY broke below the major support level has brought the pair below previous year low. Today, the pair drifted higher and tested 107.40 broken support. Will the bull push the price further upside? Alternatively, will the bear start another round of bearish move?
Today critical level to watch:
Support: 107.00, 106.10, 105.50, 105.00
Resistance: 107.40, 109.00
AUD/USD
It is a good time to stay sideways and trade the range in AUD/USD. The pair corrected lower after reached a level near 0.8000. There is initial bounce reaction near 0.7875 which could lead AUD/USD back to 0.7970 – 0.8000. Traders could continue to trade the range until next trend settled.
Today critical level to watch:
Support: 0.7875, 0.7800
Resistance: 0.7970, 0.8000