USDX (USD Index)
The index breakout and close above the red trendline which could be the sign of further bullish pressure. However, the index could no break above 96.70 and currently losing its ground. If the index closes below the red trendline today then the situation will turn into a false breakout. Traders could start placing a short position in the U.S dollar pair while watching where the index closed this week.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 4-8 February 2019
Technical Analysis
EUR/USD
Despite a breakout happened yesterday, EUR/USD turned high and aim for a close above 1.1360. If the pair could close above 1.1360 then we have a false breakout which could lead the pair further higher next week. It is the time to place small long positions and monitor today closing prices.
Today critical level to watch:
Support: 1.1300
Resistance: 1.1360, 1.1400, 1.1500, 1.1580
GBP/USD
Previous day candlestick closed as a bullish candlestick which suggests GBP/USD will attempt to move higher today. There is an upward attempt by the bull but it seems daily SMA 200 is far from current level. Looking at the chart, it is possible for the pair to close the week near 1.3000. Will GBP/USD returns above daily SMA 200 next week?
Today Critical level to watch:
Support: 1.2800, 1.2625
Resistance: 1.3000, 1.3250, 1.3300
USD/JPY
Possible triangle pattern formed on USD/JPY daily chart. The pair currently sticks near 110.00 resistance looking for breakout upside. There is no change to the outlook in USD/JPY the pair traded between 109.00 – 110.50 and will continue until breakout happen.
Today critical levels to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
A lower low printed on the chart today, but there is not enough bearish pressure that the pair return to its opening level. AUD/USD situation stay bearish and it is better to stay sideways for now. As long as the pair stays below 0.7160, the bearish trend will continue.
Today critical levels to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330