USDX (USD Index)
Upward movement in the U.S dollar index continues after The Fed Yellen gave a hawkish speech noting the interest-rate increase this year. The index will continue its movement today on the 2nd day of Yellen speech, but the upward movement might produce a bearish S-H-S pattern and overturn the index.
News to watch
08.30 AM U.S CPI, estimate 0.3% increase monthly. Core CPI 0.2% increase, Core Retail Sales 0.4% increase, and Retail Sales 0.1% increase.
10.00 AM Fed Chair Yellen Testifies
10.30 AM U.S Crude Oil Inventories estimated 3.7 million barrels increase weekly.
07.30 PM Australia Employment Change consensus 9.7k increase, Unemployment Rate at 5.8%
For full outlook for this week, you can follow Forex Outlook For The Week 13 – 17 February 2017
Technical Analysis
EUR/USD
EUR/USD is leaving 1.0640 area and maintain its descent rate. The price also broke below 1.0590 and expected to reach 1.0513 soon. The market prepares for more hawkish new from U.S region and election tension in Eurozone might put the pair further into defensive.
Today critical level to watch:
Support: 1.0562, 1.0513, 1.0500
Resistance: 1.0590, 1.0640, 1.0710, 1.0800, 1.0825
GBP/USD
Major change in GBP/USD as the pair close below 1.2500 once again. Although it looks bearish for the pair, it might stall at the current level and found support. There is a cluster of support between trendline and 1.2388 which might hinder any bearish movement. Traders could look for long position when the price visit the cluster of support.
Today critical level to watch:
Support: 1.2400, 1.2380, 1.2333
Resistance: 1.2480, 1.2500, 1.2550, 1.2670, 1.2800
USD/JPY
It is a crucial moment for USD/JPY bull as the price hanging at the top of its bearish channel. The odds tilted to bounce from the channel, following the principle, the price will follow the recent trend. However, today Yellen speech might provide some opportunity for the bull to break the channel upside.
Today critical level to watch:
Support: 114.00, 112.87, 112.56, 112.00, 111.62, 110.50
Resistance: 115.90, 117.52
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