USDX (USD Index)

U.S dollar index started the week with a downturn. The downward movement pushes the index inside the blue box again. Previous week report from the Fed indicates cautious tone is proceeding next week job data. The future of U.S dollar index once again under test. Will the index maintain a position above the blue box and start rallying?

News to watch

09.00 AM EUR ECB President Draghi Speaks

For full outlook for this week, you can follow Forex Outlook For The Week 26 – 2 Mar 2018

Technical Analysis

EUR/USD

EUR/USD is holding out against selling pressure at 1.2300. The pair slowly formed the support for bounce toward 1.2500. Traders will observe the candlestick pattern today. A bullish engulfing from current level is a good indication the pair will bounce this week.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100

Resistance: 1.2500

GBP/USD

GBP/USD traded inside triangle pattern on the daily chart with a bullish bias. The pair moves above 1.4000 and opens the upward scenario. It only needs to break above the top of triangle now. However, it is also possible for the pair to continue its ranging movement inside the triangle pattern.

Today critical level to watch:

Support: 1.4000, 1.3850, 1.3800, 1.3600

Resistance: 1.4250, 1.4325

USD/JPY

USD/JPY closed below 107.00 in the previous week but opened above the level this week. Unfortunately, the gain erased as U.S dollar index weaken globally. USD/JPY now will continue its down move.

Today critical level to watch:

Support: 106.10, 105.50, 105.00

Resistance: 107.00, 107.40, 109.00

AUD/USD

AUD/USD bounced from the bottom range 0.7800 and reached the top of the range 0.7875. The upward pressure is strong, and looks will continue. Today, traders will watch if the bull could close the pair above 0.7875 or not.

The closure above 0.7875 will help AUD/USD to test 0.8000 again.

Today critical level to watch:

Support: 0.7800

Resistance: 0.7875, 0.7970, 0.8000