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
10.00 AM Fed Chair Powell Testifies
For full outlook for this week, you can follow Forex Outlook For The Week 25-1 March 2019
Technical Analysis
EUR/USD
A close above 1.1360 finally happened in the previous trading day. The upward movement caused by The Fed Jerome Powell testimony which confirms dovish outlook for U.S dollar index. EUR/USD expected to continue its upward movement either with or without testing 1.1360. Long position when retest happens is a good option to take.
Today critical levels to watch:
Support: 1.1360, 1.1300, 1.1200
Resistance: 1.1400
GBP/USD
The pair stage major bullish rally in the previous day, launch from daily SMA 200. It is a strong bullish reaction and should continue higher in the coming days. At the current time, 1.3250 targets have reached and GBP/USD might consolidate near the level before the next movement.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250, 1.3300
USD/JPY
USD/JPY tumbled in the previous trading after previously stage rally to test the level near SMA 200. The pair currently mounting bearish pressure to break 110.50 support level. A breakout below 110.50 and the trendline should send USD/JPY significantly lower. On the other hand, a bounce followed by a breakout above daily SMA 200 is a bullish confirmation.
Today critical levels to watch:
Support: 110.50, 110.00, 109.00
Resistance: 111.00
AUD/USD
We readjust the outlook on AUD/USD after the pair manage to make a close above 0.7160. Current outlook sees triangle consolidation on the pair and AUD/USD could continue to moving upward to test the top trendline. If the pair closed below 0.7160 then traders could expect a test on the bottom trendline.
Today critical levels to watch:
Support: 0.7160, 0.7080, 0.7000
Resistance: 0.7200, 0.7300, 0.7330