USDX (USD Index)
The upward movement of U.S dollar index takes a downward turn today near the bearish channel. The index also reversed at 90.00 handles and suggested a support test is in progress. Traders will watch the blue box for support. If the bull could maintain the bullish position above the box, then we might see U.S dollar index rallying further.
ECB minutes of meeting reveal previous month change of stance in monetary policy is not appropriate even though economy improved and analysts suggest the more gradual approach.
News to watch
11.00 AM U.S Crude Oil Inventories, forecast surplus of 2.2 million barrels.
For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 Feb 2018
Technical Analysis
EUR/USD
EUR/USD might be bottoming out today as the pair bounced from 1.2300 support. The bullish bounce recovered 50% of losses incurred Yesterday. If the bull could maintain the upward movement, moreover close above previous day high then we could expect bullish leg toward 1.2500.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100
Resistance: 1.2500
GBP/USD
GBP/USD descend below 1.4000 and head toward 1.3835. The pair has not shown any bullish sign as it creates lower low each day. Currently, we could expect the pair will trade between 1.3835 – 1.4000 until next direction settled.
Today critical level to watch:
Support: 1.3850, 1.3800, 1.3600
Resistance: 1.4000, 1.4250, 1.4325
USD/JPY
USD/JPY managed to close above 107.50 on the previous trading day. However, the pair suffered abrupt reversal today as it fell below 107.00. The bearish pressure is strong and expected to push the pair further downside. We might see another test on 106.10 and 105.00.
Today critical level to watch:
Support: 106.10, 105.50, 105.00
Resistance: 107.00, 107.40, 109.00
AUD/USD
AUD/USD entered 0.7800 – 0.7875 range in the previous day and reached the bottom. Today, the pair bounced from the bottom and almost reach the top of the range. Under the current situation, we could expect AUD/USD continue above 0.7875 and move toward 0.8000.
Today critical level to watch:
Support: 0.7800
Resistance: 0.7875, 0.7970, 0.8000