Daily Forex Technical Major Pairs analysis January 12, 2017

USDX (USD Index)

The descent of U.S dollar index continues after the bearish engulfing pattern formed on the H4 chart. There is a bearish channel formed on the chart and the price almost reach the lower part of the channel. Traders will look for a bounce when the price reach 100.64 or the lower part of the channel.

If the bearish momentum is strong, the index might continue its slide toward the blue trendline.

News to watch

08.30 AM U.S Unemployment Claims, estimate 266k

07.00 PM U.S Fed Chair Yellen Speaks

China trade balance, estimate surplus of 345 billion CNY

For full outlook for this week, you can follow Forex Outlook For The Week 9 – 13 January 2017

Technical Analysis

EUR/USD

Since the opening of Thursday trading session, the price of EUR/USD has rallied and flirted with the resistance 1.06400. Looking at the overall trend and movement of the pair, we might see more short squeeze in EUR/USD, possibly toward 1.0800 in the medium term.

Today critical level to watch:

Support:  1.0580, 1.0562, 1.0500, 1.0479

Resistance: 1.0640, 1.0710, 1.0800

GBP/USD

GBP/USD at the end of the previous day closed above 1.2200 which is bullish for the pair. The pair continues its advance today with it reaching 1.2300. The bull might bring the price up further toward the SMA 200 and 1.2388.

Today critical level to watch:

Support: 1.2230, 1.2200, 1.2000

Resistance: 1.2270, 1.2300, 1.2388

USD/JPY

Unfortunately for the bull, USD/JPY slide lower below its nearest support 115.90. This event leads to another bearish setup for the pair to reach at least 112.00 and final target 110.00 – 110.50 area.

Today critical level to watch:

Support: 114.20, 114.00, 112.00

Resistance: 115.00, 115.90, 116.00, 116.80

AUD/USD

AUD/USD exceptional performance hit the 0.7500 – 0.7550 resistance area. This is the final target of retracement, but it might be possible the bull could bring the price higher than the resistance area. Traders need to wait for another price setup at the resistance level before committing to positions.

Today critical level to watch:

Support: 0.7421, 0.7400, 0.7370, 0.7340, 0.7300

Resistance:  0.7500, 0.7523, 0.7550

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