USDX (USD Index)
U.S dollar index will not budge at 92.00 support level. The index continues to stay near the level and might indicate bounce is coming soon. If the bounce happens, the index will target 93.00 or the top of its bearish channel. Traders who are looking for a long position in USD/XXX pair might get ready for the bounce.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 8 – 12 Jan 2018
Technical Analysis
EUR/USD
It looks like the time is ripe for another rejection from 1.2070 resistance level in EUR/USD. The pair shows hesitation and might reverse anytime. Though U.S job data discouraged the market last Friday, there is no major news this week which could lead to sideways movement.
Today critical level to watch:
Support: 1.2000, 1.1925, 1.1850
Resistance: 1.2070, 1.2091
GBP/USD
Initial reaction at 1.3600 put GBP/USD upward traction under question. Will it be able to break above the resistance? It might happen in the future, but not in the short-term as it is post-Brexit level. It is better for traders to look for short position near the level rather than long position.
A long position could be taken near 1.3450 with a tight stop or a loose stop below 1.3300.
Today critical level to watch:
Support: 1.3500, 1.3450, 1.3400, 1.3342
Resistance: 1.3600
USD/JPY
The bounce of USD/JPY leads the pair to reach 113.20 and once again open an upward scenario toward 114.50 – 115.00. The bull needs to clear 113.20 resistance and the bearish trendline to proceed further upside. On the other hand, rejection from the resistance might lead the pair down to test 112.00 again.
Today critical level to watch:
Support: 112.50, 112.00, 111.60
Resistance: 113.20, 114.50
AUD/USD
There is no change to the current analysis of AUD/USD. The pair expected to trade sideways between 0.7800 – 0.7875. There is bearish reaction today from the 0.7875 resistance and traders could expect it will reach 0.7800.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875