USDX (USD Index)
A crucial moment for U.S dollar index as the index closed above 100.64 in the previous week. The close above 100.64 lifted the bearish weight in the index and opened a way toward 102.00. Tax-policy by President Trump administration will boost the market and bring positivity in the U.S market.
Traders will watch price movement near 100.64, a bullish candlestick from this level will confirm next bullish leg in the U.S dollar index.
News to watch
08.30 PM China CPI estimate increase of 2.4% annually.
For full outlook for this week, you can follow Forex Outlook For The Week 13 – 17 February 2017
Technical Analysis
EUR/USD
EUR/USD close below 1.0640 but not a confident close which put a question on the next movement for the pair. We might see the pair bounce toward 1.0640 – 1.0710 range again and continue lower after that.
Today critical level to watch:
Support: 1.0590, 1.0562, 1.0500
Resistance: 1.0640, 1.0710, 1.0800, 1.0825, 1.0910
GBP/USD
Sideways movement in GBP/USD might continue today as the price formed range between 1.2480 – 1.2550. There are both bearish pattern and bullish pattern formation inside the range and no conclusion yet in the next direction.
Today critical level to watch:
Support: 1.2480, 1.2400, 1.2380
Resistance: 1.2500, 1.2550, 1.2670, 1.2800
USD/JPY
The price of USD/JPY bounced from the bottom of the channel, and the bounce put the bearish scenario toward 110.50 on hold. If the price manages to close above the upper bearish channel, it might continue higher and start a new bullish trend.
Today critical level to watch:
Support: 112.87, 112.56, 112.00, 111.62, 110.50
Resistance: 114.00, 115.90
AUD/USD
More upside in AUD/USD is expected as the pair close above its bearish channel and use the channel for a bounce. 0.7688 will act as resistance to limit the upward movement.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523, 0.7500
Resistance: 0.7688, 0.7748