USDX (USD Index)

We have a close above SMA 200 and the index maintains the level above the averages. However, there is no strong bullish pressure which might lead the index sideline near the SMA 200. In the medium-term, we think the index will continue higher and test the 98.25 resistance. If there is a major close above the resistance then traders will expect further bullish continuation.

News to watch

07.15 AM ECB President Lagarde Speaks

08.15 AM U.S ADP Non-Farm Employment Change, forecast 157k

10.00 AM U.S ISM Non-Manufacturing PMI, forecast 55.1

For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 February 2020

EUR/USD

EUR/USD come under pressure this three days, the pair might have lost its bullish pressure and start drifting lower. If the pair falls below Friday low then it might continue lower to test 1.10000 support level. On the upside, traders will observe the trendline resistance and 1.1120 also the daily SMA 200.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

The market is expecting a breakout below 1.3000 to break status the quo in GBP/USD. Unfortunately, there is no major breakout below the support level and GBP/USD continue to make daily closes above the level. Today, there is a bullish attempt, will the pair bounce from 1.3000 and continue consolidation between 1.3000 – 1.3250?

Today Critical level to watch:

Support: 1.3000

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY extend its bullish bounce from the daily SMA 200 and targets the 109.70 – 110.00 resistance. If the pair could close above the resistance area with major bullish momentum then USD/JPY will continue its long-term bullish trend.

Today critical levels to watch:

Support: 109.00, 108.50, 108.00

Resistance: 109.70, 110.00

AUD/USD

It is the time for a bullish correction in AUD/USD. The pair formed a bullish engulfing pattern yesterday, surpassing two days high. At the current time, the pair has moved above 0.6750 and will target 0.6820. Traders could prepare for short positions when the pair lost momentum and form a bearish pattern near the resistances level.

Today critical levels to watch:

Support: 0.6750, 0.6600

Resistance: 0.6800, 0.6820