USDX (USD Index)
Bullish outlook in U.S dollar index strengthened, but the advance in the index might poses threat. If the index reaches 102.00 resistance level, there is possible Shoulder-Head-Shoulder pattern formation and might weighing the index down. Meanwhile, traders could use the positive sentiment in the index and long in USD pair.
News to watch
04.30 AM UK CPI estimate 1.9% increase annually.
08.30 AM U.S PPI consensus 0.3% increase monthly
10.00 AM Fed Chair Yellen Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 13 – 17 February 2017
Technical Analysis
EUR/USD
The outlook of EUR/USD keeps getting worse as the pairs close below 1.0640 and continue lower to test the support 1.0590. There is a possibility of bounce from the current level, but it will be limited below 1.0640. Traders might want to look for a short position if the price manages to move near the 1.0640 – 1.0710 resistance area.
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
Continuation of sideway movement in GBP/USD might continue today. On Monday the price fell, but find support at 1.2480 and bounce higher to reach the top of consolidation area at 1.2550. UK CPI data might become the main driver of today movement followed by The Fed Yellen speech.
Today critical level to watch:
Support: 1.2500, 1.2480, 1.2400, 1.2380
Resistance: 1.2550, 1.2670, 1.2800
USD/JPY
USD/JPY bull hesitant when the price move near the bearish channel. It looks like the pair will move down to respect the bearish channel. Traders could take a short trade near the top of the channel while waiting for a long opportunity when the price break above the channel.
Today critical level to watch:
Support: 112.87, 112.56, 112.00, 111.62, 110.50
Resistance: 114.00, 115.90
AUD/USD
AUD/USD successfully pass the bearish test on the top and closed the day as a bullish candlestick. The candle close provide an opportunity for a challenge on 0.7688 resistance level.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523, 0.7500
Resistance: 0.7688, 0.7748