USDX (USD Index)

The bull should be pessimistic for a bounce in the U.S dollar index now. The index continues its downward movement below SMA 200 and reaches 96.10 support level today. On the weekly time-frame, we will have a bearish close below the bullish channel.

There are major job data to observe today. Lower than expected result is a further confirmation that the Fed will cut interest rate. It means the U.S dollar index will extend its weakness.

News to watch

08.30 AM U.S Non-Farm Employment Change, forecast 175k

The unemployment rate, forecast 3.6%

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

EUR/USD

EUR/USD extends its bullish movement and manages to reach 1.1300 resistance today. The pair might close inside the 1.1300 – 1.1360 range by the end of the day. However, there is a possibility that the pair could reverse and move sharply lower below 1.1185 to create a major bullish upset.

Traders will monitor the market reaction toward the U.S job data today.

today critical levels to watch:

Support: 1.1200, 1.1185, 1.1120

Resistance: 1.1300, 1.1360

GBP/USD

GBP/USD maintains bullish closes after the close above SMA 200. The pair currently testing 1.3000 resistance. As mentioned in the previous analysis, a strong close above 1.3000 is a bullish confirmation and traders could start looking for medium-long-term bullish positions.

Today Critical level to watch:

Support: 1.2800, 1.2625

Resistance: 1.3000, 1.3050

USD/JPY

USD/JPY losing too much ground below the SMA 200 and might give up more ground. Today, the pair touched 105.00 support level and currently in a pause before U.S job data. Will the pair bounce and close the day on the positive side? Alternatively, will it extend the bearish movement and close below 105.00 by the end of the day?

Today critical levels to watch:

Support: 105.00

Resistance: 106.70, 107.00

AUD/USD

Not much to do in AUD/USD, the pair is in a bullish correction phase and expected to reach 0.6700 – 0.6750 area. At the current time, the pair show a bullish reaction after the bounce from the red trendline. Short positions near the 0.6700 – 0.6750 could be considered if the pair form a major bearish pattern.

Today critical levels to watch:

Support: 0.6600, 0.6500

Resistance: 0.6662, 0.6750