USDX (USD Index)
The bounce from daily SMA 200 and the bottom of triangle pattern accelerate and brought U.S dollar index upward near 96.10. No touch on the resistance level yet, however, there is a high chance the index will test the resistance soon. If the bull could push the index further upside then we expect red trendline will be tested.
News to watch
10.00 AM ISM Non-Manufacturing PMI, forecast reading of 57.2
For full outlook for this week, you can follow Forex Outlook For The Week 4-8 February 2019
Technical Analysis
EUR/USD
The pair drifted lower and closed near Friday low. No major breakout yet from the level but it seems EUR/USD will continue moving lower. If momentum building up then EUR/USD might target 1.1360 before any bounce happen. At the current time, traders could place small short positions.
Today critical level to watch:
Support: 1.1400, 1.1360, 1.1300
Resistance: 1.1500, 1.1580
GBP/USD
There is no reaction from the daily SMA 200 yet in GBP/USD, the pair stuck near the averages. We are waiting for BOE rate decision this week which could produce momentum movement in the pair. No clue on next direction yet, however, the situation favor bullish continuation. Traders could place long positions near SMA 200.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250, 1.3300
USD/JPY
USD/JPY mostly higher after the bounce from 109.00 and the red trendline. Currently, the pair stuck near 110.00 but continue pressuring the resistance. If breakout happens then USD/JPY could continue to test 110.50 and the daily SMA 200.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
A bearish correction is expected in AUD/USD after the rejection from daily SMA 200. Today, the pair fell in Asian session but managed to regain its losses by bouncing from the level near 0.7160. Currently, the pair is on the positive side and ready to challenge daily SMA 200 again. We think it is the time for AUD/USD to break above SMA 200 and 0.7300 – 0.7330 range.
Traders could place a long position after breakout and retest happen.
Today critical level to watch:
Support: 0.7200, 0.7160, 0.7000
Resistance: 0.7300, 0.7330