USDX (USD Index)

The only direction for the U.S dollar index is to the upside. We have thirteen bullish close out of fourteen trading days and it could continue as the index almost reach 100.00 resistance. Similar to the previous day analysis, traders could continue to hold long positions in the U.S dollar.

News to watch

04.30 AM UK Flash Manufacturing PMI, forecast 49.7

Flash Services PMI, forecast 53.4

09.45 AM U.S Flash Manufacturing PMI, forecast 51.5

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

EUR/USD

EUR/USD rejected from the 1.0810 resistance in the previous trading day and managed to print lower low. The pair might continue its downward movement and print further lower low. At the current time, the pair is traded higher. Will the pair close above 1.0810 by the end of the week and reverse current bearish pressure?

today critical levels to watch:

Support: 1.0700

Resistance: 1.0800, 1.0900, 1.1000

GBP/USD

The weakness of GBP/USD brought the pair down to test the daily SMA 200. No bounce confirmation yet from the averages and the pair has not moved much from its opening level. As long as there is no close below the daily SMA 200 and 1.2800, GBP/USD expected to start moving higher and target 1.3000.

Traders could look for long positions near the SMA 200 or 1.2800 with 1.3000 as the target.

Today Critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY extended its bullish breakout and closed near 112.00 resistance yesterday. The pair is on a bullish move and might not stop yet. Above the current resistance, there is 112.50 level to target. Without any major bearish reaction in the pair, traders could continue to hold long positions.

Today critical levels to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.50

AUD/USD

There is no hope for the bull as AUD/USD continue its downward movement and fell with strong momentum. The pair could continue lower until it reaches the psychological level such as 0.6500 and 0.6000. Traders will avoid long positions for now until the pair form a major bullish reversal pattern.

Today critical levels to watch:

Support: 0.6600, 0.6500

Resistance: 0.6662, 0.6750