USDX (USD Index)
The weakness of the U.S dollar index brought the index down below daily SMA 200 and the 97.50 level. We have strong bearish momentum on Friday trading session which means the bearish pressure expected to continue this week.
Traders might want to avoid long positions in the U.S dollar for now and wait for the reaction near the yellow channel.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 February 2020
EUR/USD
EUR/USD launched upward with major bullish momentum. The pair closed above the trendline and set to challenge 1.1120 resistance this week. There is the daily SMA 200 present overlapping the 1.1120 expect the pair will stall near it. Traders will continue to monitor the pair reaction near the resistances level for now.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
UK Brexit is official now and Pound sterling has upper-hand against the U.S dollar last week. The pair continues moving upwards above the bullish engulfing pattern and expected to test 1.3250 this week. As long as there is no breakout of 1.3000 – 1.3250, GBP/USD will continue its movement inside the range.
Today Critical level to watch:
Support: 1.3125, 1.3050, 1.3000
Resistance: 1.3250
USD/JPY
USD/JPY reached the daily SMA 200 support level on Friday trading session. The pair closed as a strong bearish candlestick and might continue its bearish pressure this week. No suggestion yet as the pair located at a strong support level. If a major bullish pattern formed then traders could enter long positions.
Today critical levels to watch:
Support: 108.50, 108.00
Resistance: 109.00, 109.70, 110.00
AUD/USD
The only direction for the pair is down for now. No bullish candlestick formed on the chart, bearish momentum candlestick formed instead. At the current time, traders will continue to hold short positions until major bullish patterns formed.
Today critical levels to watch:
Support: 0.6600
Resistance: 0.6750, 0.6800, 0.6820