USDX (USD Index)
In the previous day, U.S CDC confirms the first community transmission of coronavirus. It caused a drop in the U.S stock market. In an attempt to quell the coronavirus fear, President Trump press conference today put Mike Pence in charge of coronavirus handling. According to the president, the U.S is ready even if the virus becomes widespread.
However, the market seems to perceive President Trump’s tone as underestimating the impact of the virus and pricing-in a rate-cut in April. U.S dollar index currently lower and soon will reach 98.40 support level. Will the index bounce when it tested the support level?
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 24 – 28 February 2020
EUR/USD
We think 1.1000 is the upside limit for EUR/USD and the pair might reverse when it hit the resistance level. Traders might want to wait for further reactions from the market near the resistance level before jump in short positions. The pair may continue higher and change the long-term trend from bearish to bullish.
today critical levels to watch:
Support: 1.0900, 1.0800, 1.0700
Resistance: 1.1000
GBP/USD
GBP/USD drop from 1.3000 resistance yesterday and reach the SMA 200 today. The pair expected to continue trading inside 1.2800 – 1.3000 until breakout happens. Traders might want to continue to apply ranging strategies inside the range.
Today Critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3125, 1.3250
USD/JPY
USD/JPY continues under pressure near 110.00 support level. The pair managed to maintain the positions above the support level but might close below it today. At the current time, USD/JPY traded below 110.00 and looking to add more distance below 110.00.
Today critical levels to watch:
Support: 110.00
Resistance: 110.50, 111.00, 112.00, 112.50
AUD/USD
The worst is not over for AUD/USD but the pair might take a breather today. Higher bets on the Fed rate-cut helped AUD/USD off from the low. If the pair could continue higher and close above the previous day high then we might have a bullish reversal in the coming days.
Today critical levels to watch:
Support: 0.6500
Resistance: 0.6600, 0.6662, 0.6750