USDX (USD Index)
Today is an important day for U.S dollar index as the market waiting for the Fed interest-rate decision. The interest-rate decision and outlook from the Fed will give a hint for future sentiment. There were spikes up in U.S treasury rate which brought speculation that The Fed needs to raise the interest-rate soon.
On the daily chart, U.S dollar index is under pressure today. The index sits near 88.80 support level and waiting for either a bounce or break lower. It is a long-term level which favors a bounce, but traders might want to get clear first on The Fed future sentiment before placing any trade.
News to watch
08.15 AM U.S ADP Non-Farm Employment Change, forecast 186k
10.30 AM U.S Crude Oil Inventories, forecast increase of 0.1 million barrels.
02.00 PM FOMC Statement, Federal Funds Rate
For full outlook for this week, you can follow Forex Outlook For The Week 29 – 2 Feb 2018
Technical Analysis
EUR/USD
EUR/USD made another flat close at high and moved higher in today trading session. The upward trend looks will continue, but it will depend on The Fed interest-rate result. Higher rates could bring the pair down to at least 1.2300.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2500
GBP/USD
GBP/USD bounced from 1.4000 and confirmed the range 1.4000 – 1.4325. Although there is a bounce from the support, the pair is in consolidation situation. There is nothing to expect yet as the Fed interest-rate decision loom. Depend on the result, tomorrow we might see GBP/USD hanging above 1.4325, or it could slam down to 1.3835.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3800, 1.3600
Resistance: 1.4250
USD/JPY
USD/JPY stay pessimistic below 109.00 but the bulls are lurking like a lion for a possible sharp break above 109.00. It is the third days close below 109.00, will we see a continuation lower today?
Today critical level to watch:
Support: 107.40
Resistance: 109.00, 110.50, 111.00, 111.60
AUD/USD
No change in AUD/USD direction, it follows the strength of commodities. Similar to previous analysis, the best possible setup to watch is the long position from 0.8000.
Today critical level to watch:
Support: 0.8000, 0.7970, 0.7875, 0.7800
Resistance: –