USDX (USD Index)

U.S dollar index corrected lower yesterday after weaker than expected advance GDP data. The weakness has not brought the index to the daily SMA 200. We think the index will test the averages soon and bounce from it. Coronavirus will continue under focus for now as WHO has declared a global emergency. Expect further upside in the index in the coming week.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 27 – 31 January 2020

EUR/USD

EUR/USD bounced from the 1.1000 and avoided breakdown below the support level. The pair might continue moving upside. However, we think the fear of coronavirus might continue to pressure the pair and expected breakout below the support level in the coming week.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

GBP/USD managed to bounce from 1.3000 support level and closed the day as a bullish engulfing pattern. It is a bullish sign after BOE decides to hold interest-rate steady. At the current time, the pair is challenging 1.3125 resistance. Traders might want to refrain from taking positions as a Brexit event taking place today. The pair could make sudden movement after the Brexit event.

Today Critical level to watch:

Support: 1.3050, 1.3000, 1.2800, 1.2625

Resistance: 1.3125, 1.3250

USD/JPY

USD/JPY holding out near the 109.00 level even though the pair pushed lower yesterday. No conclusion yet on the pair next direction, it might continue lower and reach the daily SMA 200 before deciding the next direction. Traders will continue to observe the pair reaction at the current level.

Today critical levels to watch:

Support: 108.50, 108.00

Resistance: 109.00, 109.70, 110.00

AUD/USD

Major bearish blowout suffered by AUD/USD. No bullish indication at all and new fresh low printed on the chart. Similar to the previous day analysis, it is better to avoid long positions for now. Traders who has short positions could continue to hold the positions.

Today critical levels to watch:

Support: 0.6600

Resistance: 0.6750, 0.6800, 0.6820