USDX (USD Index)
There is no change in U.S dollar index situation. The index stays at low and struggling to hold its position. Currently, we have the index move near its opening level after failed upward attempt. If the bearish pressure continues mount, we might see lower close today.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 Jan 2018
Technical Analysis
EUR/USD
Mute reaction in EUR/USD today, the pair traded inside previous day range and showed no direction. The trend stays bullish for medium-term and traders might want to avoid short position until strong bearish pattern emerge. We project EUR/USD will move between the top of the blue channel and 1.2300.
Today critical level to watch:
Support: 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2300
GBP/USD
GBP/USD has reached the top of projected range 1.3835 – 1.4000 today. If the pair respected the resistance, we might see the start of short-term correction toward 1.3835. Further upward pressure will burst the resistance, and the pair might move up aggressively.
Today critical level to watch:
Support: 1.3850, 1.3800, 1.3600, 1.3500, 1.3450
Resistance: 1.4000
USD/JPY
USD/JPY is on the verge of breaking down sharply below 110.50. The pair keeps losing altitude, and it seems the road toward 109.00 will be opened soon. If the breakdown happens, traders could use 110.50 as re-test level to look for a short position. On the other hand, a bullish close above 110.50 will cancel the bearish outlook.
Today critical level to watch:
Support: 110.50
Resistance: 111.00, 111.60, 112.00, 112.50
AUD/USD
Initial bearish reaction appears at 0.8000 today, AUD/USD being sold heavily. Fortunately, the selling could not break below 0.7970, and the bull maintained the upper hand. Despite the possibility of bearish close today, traders might want to stay sideways if the pair could not close below 0.7970. The bull might return next day and make a sharp move upward to test 0.8000 again.
Today critical level to watch:
Support: 0.7970, 0.7875, 0.7800, 0.7750, 0.7690
Resistance: 0.8000