USDX (USD Index)

No bullish close yet in the U.S dollar index daily chart. Moreover, there is bearish pressure below the previous day low which suggests further weakness in the index. It is better to avoid long positions for now and wait until the index makes bullish close first before entering long positions.

Without any change in the direction then the U.S dollar index will continue lower to target 96.70

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 02 – 06 March 2020

EUR/USD

EUR/USD on track higher today and will use the upward momentum to further distance itself from the daily SMA 200. The longer the pair maintain the positions above SMA 200 the higher the chance for bullish continuation. At the current time, it is better to avoid short positions until the pair form a major bearish pattern.

today critical levels to watch:

Support: 1.1120

Resistance: 1.1185, 1.1200

GBP/USD

GBP/USD rejected from the daily SMA 200 and 1.2800. However, the pair continue to stick near 1.2800 and aiming for the higher close. No clue yet on the next direction. If the pair could return above SMA 200 then traders will expect the pair to trade between 1.2800 – 1.3000.

Today Critical level to watch:

Support: 1.2625

Resistance: 1.2800, 1.3000, 1.3050

USD/JPY

USD/JPY rejected from the daily SMA 200 and it is testing the 107.40 support level. A close below previous day low will become the bearish confirmation. At the current time, traders will wait for either a close above SMA 200 or below 107.40 to determine the next direction.

Today critical levels to watch:

Support: 107.40

Resistance: 109.00, 110.00

AUD/USD

The interest-rate cut by RBA brings AUD/USD higher after a prolonged bearish trend. The pair could finally start moving higher in a bullish correction. Despite the bullish situation, it is better to wait for a bearish opportunity as the long-term trend of AUD/USD still bearish.

Today critical levels to watch:

Support: 0.6600, 0.6500

Resistance: 0.6662, 0.6750