USDX (USD Index)
The bull brought U.S dollar index higher in the previous day, surpassing the previous swing high. The movement confirmed short-term bullish leg in the index and could lead to a long-term rally. Today, The new Fed chief Jerome Powell will testify before the Senate. Further hawkish comment in front of the senate will help U.S dollar index moving further upside.
News to watch
04.30 AM UK Manufacturing PMI, estimated reading of 55.1
10.00 AM U.S Fed Chair Powell Testifies
ISM Manufacturing PMI estimated reading of 58.7
For full outlook for this week, you can follow Forex Outlook For The Week 26 – 2 Mar 2018
Technical Analysis
EUR/USD
EUR/USD tumbled below 1.2200 yesterday, extending the drop after hawkish Fed comment. Judging from the movement of EUR/USD it seems the pair could move lower to 1.2070 before bounce happen. Traders could look for a short position on any rally and ride it lower. However, if Jerome Powell throws dovish comment, we might see EUR/USD start moving up.
Today critical level to watch:
Support: 1.2100
Resistance: 1.2200, 1.2300, 1.2500
GBP/USD
GBP/USD broke outside of triangle pattern and closed below 1.3835. The pair looks will continue its downward movement toward 1.3600 or the red trendline. Trades could use 1.3835 as a level for short position when retest happen.
Today critical level to watch:
Support: 1.3600
Resistance: 1.3800, 1.3850, 1.4000
USD/JPY
There is no breakout in USD/JPY yet, the pair stays inside the triangle pattern and follows the sideways scenario. Traders will wait until breakout happen to place position.
Today critical level to watch:
Support: 106.10, 105.50, 105.00
Resistance: 107.00, 107.40, 109.00
AUD/USD
The bear managed to close the pair below daily SMA 200 and trigger more selling today. Because of the close below SMA 200, the overall outlook turns negative, and traders could start looking for the short position. The retest of daily SMA 200 is what traders will watch.
Today critical level to watch:
Support: 0.7690
Resistance: 0.7750, 0.7800, 0.7875