USDX (USD Index)

U.S dollar index surpassed 99.40 resistance yesterday and set to continue its upward movement toward 100.00 resistance. No stop to the bullish situation of the index yet as coronavirus continues to spread. Traders should avoid shorting the U.S dollar for now. If the index moves lower then traders could look for long positions in the U.S dollar when the index hit 99.40.

News to watch

04.30 AM UK Retail Sales m/m, forecast 0.7%

07.30 AM ECB Monetary Policy Meeting Accounts

For full outlook for this week, you can follow Forex Outlook For The Week 17 – 21 February 2020

EUR/USD

EUR/USD managed to secure a bullish close yesterday but below 1.0810. The pair make another bullish attempt toward the level but get rejected today. If the pair move below the previous day low then it is possible EUR/USD will continue its bearish trend. No confirmation yet as of now, we might get some movement in Europe and U.S trading session.

today critical levels to watch:

Support: 1.0700

Resistance: 1.0800, 1.0900, 1.1000

GBP/USD

We have a bearish close below 1.3000 which means the pair will trade between 1.2800 – 1.3000. GBP/USD expected to continue lower and reach daily SMA 200 and 1.2800 support levels. Meanwhile, traders could use the moment to trade the range between 1.2800 – 1.3000 until breakout happens.

Today Critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY finally breakout from 110.00 resistance after prolonged test of the resistance level. We have a massive breakout which surpassed 110.50 and 111.00. If the bullish movement continues then the pair will reach 112.00 and 112.50 soon.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.50

AUD/USD

Bearish is the only direction for AUD/USD now. The pair printed lower low today with strong bearish momentum. If the bear could maintain the bearish pressure until the close of the day then AUD/USD expected to extend its bearish movement in the coming days or weeks.

Today critical levels to watch:

Support: 0.6600, 0.6500

Resistance: 0.6662, 0.6750