USDX (USD Index)
Today might be the time for U.S dollar index to start a new bullish leg. In U.S trading session, the index recovered all of its losses incurred today. Although it is still below previous day high, the index has the potential to close above it. Bullish move from current level could lead U.S dollar index higher to test 96.70 resistance.
Advance GDP q/q released at 2.6% vs. 2.2% expectation.
News to watch
08.15 AM Fed Chair Powell Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 25-1 March 2019
Technical Analysis
EUR/USD
EUR/USD rallied above previous day high but tumbled after U.S advance GDP came out stronger than expected. It is a reason for the Fed to switch to the hawkish side. The pair currently testing its support 1.1360. A close below the level will trigger more selling toward 1.1300.
Today critical levels to watch:
Support: 1.1360, 1.1300, 1.1200
Resistance: 1.1400
GBP/USD
Yesterday when GBP/USD hit 1.3250 and continue further toward 1.3300 – 1.3330 area, it seems the pair has gone super bullish and could continue higher. However, today trading session proved that the resistance 1.3300 – 1.3330 is a hard area to break. There is bearish reaction today and it will test 1.3250 soon. Will GBP/USD stay bullish and continue its upward movement the next day?
Today Critical level to watch:
Support: 1.3250, 1.3000, 1.2800, 1.2625
Resistance: 1.3300, 1.3330
USD/JPY
The struggle inside the green area might come to an end today after USD/JPY launch and crossed daily SMA 200. The bullish movement has momentum. If the bull could maintain the position and close above daily SMA 200 then we could expect USD/JPY to continue toward 112.00.
Today critical levels to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00
AUD/USD
A close below 0.7160 happened yesterday and AUD/USD choose the scenario to test the bottom trendline. We will wait until the test happens and see the market reaction. Traders suggested to stay flat or taking short positions near 0.7160 only.
Today critical levels to watch:
Support: 0.7080, 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330