USDX (USD Index)
The result of the U.S advance GDP worse than expected. The data show 1.4% increase compared to 1.8% expectation. U.S dollar index pullback lower and getting near daily SMA 200. The index might test the support level before the end of the week. If a close below SMA 200 happens then the index may continue moving lower.
However, traders will take account of coronavirus development in China. The death toll continues to rise and more diagnosed with the virus. Out of control situation might lead the U.S dollar index to the upside.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 27 – 31 January 2020
EUR/USD
The pair saved by worse than expected data from the U.S. We have a bounce from the 1.1000 support level and EUR/USD might continue upward to test the trendline. However, traders might want to be ready if the pair make sudden South movement. Brexit is tomorrow and it should have an impact on the pair.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
GBP/USD bounced from the 1.3000 support level and set to close the day as a bullish engulfing pattern. No rate-cut by BOE and it helped the bull to recoup losses incurred from the latest downward movement. The upward movement also fueled by bad U.S GDP data.
No clue yet in the next direction as the current movement might be temporary action before tomorrow Brexit.
Today Critical level to watch:
Support: 1.3050, 1.3000, 1.2800, 1.2625
Resistance: 1.3125, 1.3250
USD/JPY
USD/JPY extends its weakness below 109.00 support level and soon will reach the daily SMA 200. At the current time, traders will continue to observe the pair reaction near the support level and enter long positions when there is a major bullish reaction.
Today critical levels to watch:
Support: 108.50, 108.00
Resistance: 109.00, 109.70, 110.00
AUD/USD
No change to the strong bearish pressure in AUD/USD since the rejection from daily SMA 200. The pair currently fall below 0.6750 and set to fall deeper. Traders who want to take short positions might want to wait until the pair corrected higher.
Today critical levels to watch:
Support: 0.6600
Resistance: 0.6750, 0.6800, 0.6820