USDX (USD Index)
The weakness continues in U.S dollar index as the index fall below previous day low. Currently, optimism on trade talk and Jerome Powell testimony is the driving force of current bearish move. Expect the index to hit 96.10 support soon. If there is no bounce or bullish pattern from the support level then traders could expect the U.S dollar index to continue further lower toward SMA 200.
News to watch
09.45 AM Fed Chair Powell Testifies
10.00 AM U.S CB Consumer Confidence, forecast reading of 124.8
For full outlook for this week, you can follow Forex Outlook For The Week 25-1 March 2019
Technical Analysis
EUR/USD
No escape from 1.1300 – 1.1360 range yet for EUR/USD. The pair might put pressure on the resistance level today. However, the direction of EUR/USD will be determined by where the pair closed. Another close below 1.1360 might trigger selling and lead EUR/USD down to test 1.1300.
Today critical levels to watch:
Support: 1.1300, 1.1200
Resistance: 1.1360, 1.1400
GBP/USD
GBP/USD launched from daily SMA 200 and almost reach 1.3250. The happen earlier than we expect and under current momentum, GBP/USD might break above the resistance. At the current time, traders who are looking for short positions might want to wait until the pair show reaction from 1.3250.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250, 1.3300
USD/JPY
Despite the bullish close in the previous day, USD/JPY continued its sideways movement inside the green range. The pair still trapped between 110.50 and daily SMA 200 which suggest no major position yet. It is better to continue to trade the range for now.
Today critical levels to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
AUD/USD boosted back to 0.7160 resistance and closed near the level. Although it looks bullish, the close is no convincing and we need another close higher above 0.7160. Otherwise, AUD/USD might be set for another slide below the support around 0.7080.
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330