USDX (USD Index)
U.S dollar index traded under pressure in the previous week but maintained position despite bearish news from the government. At the end of the previous week, lawmakers failed to reach agreement on a spending bill which results in a partial close of government. Until Today, there is no agreement reached yet, and it affected famous site such as Statue of Liberty.
The result of the government shut down might linger in the stock market which will hinder the rally. If the market correlation is working as expected, we might see U.S dollar index bounce up from current level.
News to watch
Bank of Japan will make Monetary policy statement today.
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 Jan 2018
Technical Analysis
EUR/USD
EUR/USD upward movement limited below 1.2300 in the previous week. The bullish pressure looks stable and might continue above the resistance this week. Traders could use the top of the blue channel for a long entry. If the pair decides to move down, it might enter the channel and reach 1.2070 to look for support.
Today critical level to watch:
Support: 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2300
GBP/USD
GBP/USD this week expected to trade between 1.3835 – 1.4000. The pair has a bullish advantage following the break above post-Brexit level. Traders could use 1.3835 as the base level to place long position. A break below 1.3835 might drive the pair down to test 1.3600.
Today critical level to watch:
Support: 1.3850, 1.3800, 1.3600, 1.3500, 1.3450
Resistance: 1.4000
USD/JPY
USD/JPY pushed lower in the previous week, but there is no breakout below 110.50 which is a safe situation for the bull. This week, there is a bullish reaction, will it help the bull to bounce up and avoid breakdown?
Today critical level to watch:
Support: 110.50
Resistance: 111.00, 111.60, 112.00, 112.50
AUD/USD
AUD/USD possible top formed at 0.8000 as the pair struggling to close above the resistance. However, there is no apparent sell-off yet from the level and suggest stalemate situation. Traders could use the level to look for short position and scale out position when there is daily close above 0.8000.
Today critical level to watch:
Support: 0.7970, 0.7875, 0.7800, 0.7750, 0.7690
Resistance: 0.8000