USDX (USD Index)

U.S dollar index averted breakdown below 88.80 support level and produced a harami pattern. The pattern indicates neutral sentiment and might turn bullish if the bull manages to bring the index above two days high. Traders will wait for further confirmation before placing position.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 29 – 2 Feb 2018

Technical Analysis

EUR/USD

There is no change in EUR/USD projection yet, the pair currently stuck at high after testing 1.2500 milestones. The pair might continue its sideways movement this week and has a bearish bias before Wednesday Fed interest-rate announcement. 1.2300 is the level to watch for long position re-entry.

Today critical level to watch:

Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000

Resistance: 1.2500

GBP/USD

The upward movement of GBP/USD hit 1.4326 resistance and reversed down. The pair currently hovering in the middle of 1.4000 – 1.4326 range and inclines to corrected deeper lower. Traders could expect the pair sit near 1.4000 before the Fed interest-rate decision this Wednesday.

Today critical level to watch:

Support: 1.4000, 1.3850, 1.3800, 1.3600

Resistance: 1.4250

USD/JPY

The winner has been decided in USD/JPY after the pair closed below 109.00. The bearish pressure is strong and could continue further down to 107.40. However, the bull still has an opportunity to reverse the verdict by making a momentum movement above 109.00. We will wait until this week Fed interest-rate decision.

Today critical level to watch:

Support: 109.00

Resistance: 110.50, 111.00, 111.60

AUD/USD

AUD/USD has a bright outlook on its daily chart and the pair currently testing previous year high, looking for a breakout. If the pair could move past previous year high, then we will see the uptrend continue. The possibility is high following the rebound in commodity and metals prices.

Today critical level to watch:

Support: 0.8000, 0.7970, 0.7875, 0.7800

Resistance: –