USDX (USD Index)

The downward pressure in the U.S dollar index brought the index to touch 98.40 support level. The current bearish movement has strong momentum and might extend below 98.40. If the index manages to reach daily SMA 200 then traders could prepare to enter long positions.

However, since President Trump press conference and announcement from CDC that the virus could spread in the U.S. The market pricing-in a rate-cut by the Fed in April.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 24 – 28 February 2020

EUR/USD

EUR/USD mostly higher as the U.S dollar index fell sharply. The pair jumped from 1.0900 toward 1.1000 in one day. At the current time, we will wait for a reaction near 1.1000. It seems the pair could extend its bullish movement further above 1.1000. If the pair moves higher then it might target SMA 200.

today critical levels to watch:

Support: 1.0900, 1.0800, 1.0700

Resistance: 1.1000

GBP/USD

GBP/USD down from 1.3000 resistance level but maintain the close between SMA 200 and 1.3000. The pair expected to consolidate inside the range and waiting for a breakout. Traders could apply ranging strategies inside the SMA 200 and 1.3000 for now.

Today Critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY bullish trend is under threat as the pair closed below 110.00 support level. Today, the pair extend its bearish movement and manage to reach 109.00 support level. If there is no bullish reaction from the support level then USD/JPY could continue toward SMA 200.

We still think the pair could return to its bullish track and assuming SMA 200 as the last support level to break. If breakout below SMA 200 happens then the trend will change entirely into bearish.

Today critical levels to watch:

Support: 109.00

Resistance: 110.00, 110.50

AUD/USD

No change to the AUD/USD direction which is downward. Same note as yesterday, the worst is not over yet for the pair. There is fresh low printed today and the pair soon will reach 0.6500 support level. It is better to stay short for now and waiting for a strong bullish reaction before switching to the bullish side.

Today critical levels to watch:

Support: 0.6500

Resistance: 0.6600, 0.6662, 0.6750