USDX (USD Index)

U.S dollar index makes an upward movement today above the blue box and looking to confirm the breakout. The successful close above the blue box means a short-medium term bullish move at least until 91.00.

News to watch

10.30 AM U.S Crude Oil Inventories, forecast 3.2 million barrels increase

For full outlook for this week, you can follow Forex Outlook For The Week 5 – 9 Feb 2018

Technical Analysis

EUR/USD

EUR/USD correction almost reached 1.2300 before bought by the bull Yesterday. The pair makes another bearish push today and targets the support level. Currently, we still expect the pair will bounce when it hit the support level. However, strong bearish pressure and continuation of strength in U.S dollar index could lead us to reiterate the outlook.

If the level is broken then, EUR/USD could move lower to 1.2070.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000

Resistance: 1.2500

GBP/USD

The pair broke below 1.4000 and triggered the bearish scenario. Meanwhile, it is expected to trade sideways between 1.3835 – 1.4000. Traders could use this moment to trade the range until breakout happens.

Today critical level to watch:

Support: 1.3850, 1.3800, 1.3600

Resistance: 1.4000, 1.4250, 1.4325

USD/JPY

USD/JPY holding above 109.00 and prevented breakdown, but the pair still vulnerable as it is not far from the level. Traders might want to continue observing the reaction at 109.00 before placing long position.

Today critical level to watch:

Support: 109.00, 107.40

Resistance: 110.50, 111.00, 111.60

AUD/USD

AUD/USD fell below 0.7875 on the previous day, but manage to close the day at bullish side. The pair currently falls below the level again and might start another bearish leg. We expect the pair traded between 0.7800 – 0.7875 with a more bearish view.

Today critical level to watch:

Support: 0.7800

Resistance: 0.7875, 0.7970, 0.8000