USDX (USD Index)

There is no positive development yet on U.S dollar index. The bearish pressure pushed the index to close lower again on Monday. Without any change to the bearish sentiment, we might see the index fall further today. However, It is possible technical bounce may happen soon.

News to watch

04.30 AM UK CPI, forecast increase of 3.0% YoY

There was news regarding German new government formation, SPD rejected coalition talk Yesterday.

For full outlook for this week, you can follow Forex Outlook For The Week 15 – 19 Jan 2018

Technical Analysis

EUR/USD

EUR/USD extended its upward movement Yesterday and closed above 1.2200. The pair is hanging at high and traders might want to stay flat until significant correction happen.

Today critical level to watch:

Support: 1.2200, 1.2100, 1.2070, 1.2000

Resistance: –

GBP/USD

GBP/USD breakout above post-Brexit level deliver the pair to the next resistance area 1.3850 – 1.4000. Will the bull continue to push the price higher and move inside the resistance area? Alternatively, will the pair start correction and test 1.3600 broken resistance?

Today critical level to watch:

Support: 1.3600, 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3850, 1.4000

USD/JPY

USD/JPY broke lower Yesterday below 111.00 key support, but the bear could not overtake 110.50 support level and closed the day two pips above the support. Traders will watch how the pair move next, will it bounce or continue moving lower?

Today critical level to watch:

Support: 110.50

Resistance: 111.00, 111.60, 112.00, 112.50

AUD/USD

AUD/USD reached the checkpoint 0.7970 and closed near it. There is no reaction yet from the resistance, and the bull seems in control. Will the pair continue its upward movement and test 0.8000?

Today critical level to watch:

Support: 0.7875, 0.7800, 0.7750, 0.7690

Resistance: 0.7970, 0.8000