USDX (USD Index)
The bull has an upper hand after the index move higher and closed near 98.25 resistance. If the index could close above 98.25 by the end of the week then it is expected to continue the bullish trend. Traders will wait for further reactions near the resistance level. We might have a reaction tomorrow after non-farm employment data.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 February 2020
EUR/USD
In the previous day, EUR/USD fell with strong bearish momentum and reach the 1.1000 support level. The bear only needs to tip the pair and close below 1.1000 to continue the medium-long-term bearish trend. At the current time, traders will wait for the weekly closing level. A close below the 1.1000 by the end of the week is an indication that the pair will continue its long-term bearish trend.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD situation is similar to the situation in EUR/USD. The pair is under pressure near the support level of 1.3000. However, no break and close below the support level yet. As long as there is no close below the level then GBP/USD expected to continue its ranging movement inside 1.3000 – 1.3250.
Today Critical level to watch:
Support: 1.3000
Resistance: 1.3050, 1.3125, 1.3250
USD/JPY
The overall trend of USD/JPY starts to become bullish again after the bounce from the daily SMA 200. Recent bounce brought USD/JPY up and erase the 9 days bearish move in just three days rally. USD/JPY expected to trade between 109.70 – 110.00 now while waiting for a bullish breakout. If the pair could close above 110.00 then traders will expect further bullish movement toward 110.50 – 111.00.
Today critical levels to watch:
Support: 109.70, 109.00, 108.50, 108.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
The resistance 0.6750 workings as expected where AUD/USD upward movement limited near it. No close above the resistance and today upward movement also limited below the level. If the upward breakout happens then traders will expect AUD/USD to continue upward and test 0.6820.
When the pair reach 0.6820 then traders could prepare to enter short positions.
Today critical levels to watch:
Support: 0.6750, 0.6600
Resistance: 0.6800, 0.6820