USDX (USD Index)

U.S dollar index moves above the blue box in the initial session, but the index is losing gas and started to descend to its opening level. The market is waiting for FOMC meeting minutes later at 2.00 PM. We might see some volatility after the event. If the Fed maintains the hawkish stance, then U.S dollar index might move further upside to reclaim 90.00.

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

EUR/USD finally reached the target point for correction at 1.2300. The pair shows some bullish reaction at the support and top of the blue channel. If the bull could close the day with a bullish reversal candlestick, then it is possible EUR/USD will start another bullish leg.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100

Resistance: 1.2500

GBP/USD

The pair is bullish but fragile at the same time. GBP/USD continuously close near the 1.4000 handle while printing lower low each day. This means the bearish interest is strong, but the bull manages to contain it so far. Will the bull survive from the bear attack and start an upward movement from 1.4000?

Today critical level to watch:

Support: 1.4000, 1.3850, 1.3800, 1.3600

Resistance: 1.4250, 1.4325

USD/JPY

USD/JPY extend the rally from 106.10 support and breach 107.40 resistance today. The pair hesitant after the breakout and hovering near the breakout level. Today FOMC meeting minutes might provide a clue for next USD/JPY direction. Traders could observe where the pair close at the end of the day. We still favor bearish continuation scenario below 107.40.

Today critical level to watch:

Support: 107.00, 106.10, 105.50, 105.00

Resistance: 107.40, 109.00

AUD/USD

AUD/USD gave up more ground below 0.7875 and enter 0.7800 – 0.7875 range. There is no reversal indication yet, and the pair might continue downward until the next support touched.

Today critical level to watch:

Support: 0.7800

Resistance: 0.7875, 0.7970, 0.8000