USDX (USD Index)

U.S dollar index drifted lower today and progress in a bearish manner. It looks like the index will not find support soon and might reach a level around 88.80. The level is previous resistance shown by 2010 high. Traders might want to stay out of U.S dollar long position until strong bullish pattern formed.

News to watch

10.30 AM U.S Crude Oil Inventories, estimated a deficit of 1.0 million barrels.

For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 Jan 2018

Technical Analysis

EUR/USD

EUR/USD climb higher today after previous day close near 1.2300 resistance. There is a mini-breakout, but need more confirmation by price close at the end of the day. Traders might want to stay sideways for now until breakout or rejection apparent.

Today critical level to watch:

Support: 1.2200, 1.2100, 1.2070, 1.2000

Resistance: 1.2300

GBP/USD

GBP/USD upward movement continues¶ above 1.4000 resistance today, the pair looks attempting to add more distance from the broken resistance. If the upward momentum maintained, we might see the pair heading to 1.4250.

Today critical level to watch:

Support: 1.4000, 1.3850, 1.3800, 1.3600

Resistance: 1.4250

USD/JPY

USD/JPY finally broke below 110.50 and continued its descend toward 109.00. It is only a matter of time the pair will reach the support level. Traders could use 110.50 as the level to take a short position. Shorting near 109.00 is not suggested as the bull might return and push the price up.

Today critical level to watch:

Support: 109.00

Resistance: 110.50, 111.00, 111.60

AUD/USD

AUD/USD closed at 0.8000 and nullify the bearish pressure built in the Tuesday early session. Today, the bull return and push the price up from 0.8000 support. Will the pair continue upward and make new higher high? Alternatively, will it start a correction and reach 0.7875?

Today critical level to watch:

Support: 0.80000.7970, 0.7875, 0.7800

Resistance: –