USDX (USD Index)
The upward movement of U.S dollar index continue without much trouble, and it is getting near the 91.00 resistance. It might be a good idea to scale out of long position in USD when the index testing resistance. However, traders who trade for long-term could hold a long position as the index bounced from monthly SMA 200.
On the U.S side, the U.S government might experience the second shutdown under President Trump reign. The shutdown is detrimental to equity market but beneficial for U.S dollar.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 5 – 9 Feb 2018
Technical Analysis
EUR/USD
EUR/USD could not close at bullish side Yesterday but stay near the top of the blue channel. There is no clue yet where the pair will head to next. The close below the top of the blue channel is strong indication the pair will continue down to 1.2070.
Today critical level to watch:
Support: 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2300, 1.2500
GBP/USD
We have a false bull incident on GBP/USD daily chart. In the previous day, the bull storming the market with a movement above 1.4000. However, nearing the end of the day, the bear return and brought the pair back inside Wednesday range. It is a strong bearish indication and might lead to a breakdown below 1.3835.
Today critical level to watch:
Support: 1.3850, 1.3800, 1.3600
Resistance: 1.4000, 1.4250, 1.4325
USD/JPY
USD/JPY fell below 109.00 again Yesterday and put the pair under pressure. However, there is no winner yet as the pair stick near 109.00 traded back and forth. No change to the projection, USD/JPY expected to trade between 109.00 – 110.50 until breakout happens.
Today critical level to watch:
Support: 109.00, 107.40
Resistance: 110.50, 111.00, 111.60
AUD/USD
The descend of AUD/USD surpass 0.7800 and almost touched daily SMA 200. The pair correction might stall at the current level, but there is a possibility it will continue below daily SMA 200. Meanwhile, traders could look for long position near the averages and bail if there is close below it.
Today critical level to watch:
Support: –
Resistance: 0.7800, 0.7875, 0.7970, 0.8000