USDX (USD Index)
U.S dollar index hovering lower in today trading session as The Fed kick-off two days meeting. The meeting will decide interest-rate and provide a future outlook. Current expectation sees no rate-hike which mean the direction of the U.S dollar index will depend on Jerome Powell speech.
We expect the index will continue its downward movement to reach 95.50 support level before new bullish leg formed.
News to watch
10.00 AM U.S CB Consumer Confidence, forecast reading of 125.0
For full outlook for this week, you can follow Forex Outlook For The Week 28-1 February 2019
Technical Analysis
EUR/USD
The bullish pressure in EUR/USD extended for third days. We see the pair challenging trendline and the green triangle area. The pair direction will depend on The Fed meeting result. Without a change in interest-rate and followed by dovish outlook by Jerome Powell, expect EUR/USD flying toward 1.1580.
Today critical level to watch:
Support: 1.1400, 1.1360, 1.1300
Resistance: 1.1500, 1.1580
GBP/USD
Bullish sentiment helped GBP/USD to reclaim level above daily SMA 200. But it seems the market turn cautious as Brexit debate ongoing. After the debate, we will have another round of vote. GBP/USD might move sideways while the vote under progress and move sharply after result released.
Technically, long position near the daily SMA 200 is the favored scenario.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250
USD/JPY
Similar situation as the previous day, the pair showing no clue for next direction yet. It is currently testing the red trendline and support level 109.00. Expect more sideways movement between 109.00 – 110.50.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD closed near 0.7160 and back to equilibrium. The pair showing less volatility before The Fed interest-rate decision. It could move sharply either way after the result released. Traders could stay sideway or enter positions with small risk at the current level.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300