USDX (USD Index)
The index is on the backfoot after The Fed announced no rate-hike and cited they will be patient on future rate-hike. It is a possible signal that no more rate-hike at least until June. Currently, the index traded downward and testing the daily SMA 200. If there is no bounce from the averages then U.S dollar index expected to continue its bearish trend below 95.00.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 28-1 February 2019
Technical Analysis
EUR/USD
EUR/USD bullish leg continue and the pair reached 1.1500. It seems the bullish leg still has power and could continue upward to 1.15800 or the daily SMA 200. It is better to avoid taking a short position until a bearish close happen or a strong bearish pattern emerge.
If EUR/USD could breach 1.1580 then the long-term trend will turn bullish.
Today critical level to watch:
Support: 1.1400, 1.1360, 1.1300
Resistance: 1.1500, 1.1580
GBP/USD
If we disregard all of the fundamental issues then GBP/USD cleanly bounce from daily SMA 200. The bounce surpassed previous day high and might continue upward to 1.3250. Traders who want to take long positions could watch 1.3250. On the other hand, a short position might not available until the pair reaches 1.3450 – 1.3500.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3250
USD/JPY
USD/JPY closed at 109.00 in the previous day which provides us with no breakout. However, the pair losing ground and fall below 109.00. If the bear could push the pair further downside then we could expect USD/JPY will test 107.40 again.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00, 110.50, 111.00
AUD/USD
0.7300 – 0.7330 is not far from the current level after AUD/USD rallied from 0.7160 in the previous day. The upward movement completed the initial target and next medium-term direction will depend on the bull. If the bull could close above daily SMA 200 and 0.7300 – 0.7330 then we could expect AUD/USD to continue moving toward 0.7450.
Today critical level to watch:
Support: 0.7200, 0.7160, 0.7000
Resistance: 0.7300, 0.7330