USDX (USD Index)
Price development of the U.S dollar index turns out into an undesirable situation where the price formed bearish pin bar. The bearish pin bar location also ideal for a short position as the index also formed shoulder-head-shoulder pattern. If the index closes below 100.64, then we will see new bearish pressure in the U.S dollar index.
News to watch
07.30 AM ECB Monetary Policy Meeting Accounts
For full outlook for this week, you can follow Forex Outlook For The Week 13 – 17 February 2017
Technical Analysis
EUR/USD
S-H-S formation in the U.S dollar index mirrored by an inverted S-H-S pattern in the EUR/USD daily chart. The formation of inverted S-H-S also followed by pin bar which put the odds better for the long position. Traders could see the price of EUR/USD upward movement accelerated when it move past 1.0710.
Today critical level to watch:
Support: 1.0590, 1.0562, 1.0513, 1.0500
Resistance: 1.0640, 1.0710, 1.0800, 1.0825
GBP/USD
Bullish sign in GBP/USD, the price bounced from 1.2388 support cleanly and hovered between 1.2480 – 1.2500. Same resistance level to remove for the pair, if it manage to remove 1.2550, then bull traders will enjoy a comfortable ride toward 1.2670.
Today critical level to watch:
Support: 1.2480, 1.2400, 1.2380, 1.2333
Resistance: 1.2500, 1.2550, 1.2670, 1.2800
USD/JPY
Rejection happened in USD/JPY after it tests the upper bearish channel. The rejection also formed pin bar which broken today and might put the pair further down. Will it reach 110.50 this time?
Today critical level to watch:
Support: 112.87, 112.56, 112.00, 111.62, 110.50
Resistance: 114.00, 115.90, 117.52
AUD/USD
Upward movement in AUD/USD continues as the price bounced from 0.7688 resistance turned support level. The pair expected to reach 0.7748 soon and decide next direction there.
Today critical level to watch:
Support: 0.7688, 0.7660, 0.7590, 0.7550, 0.7523
Resistance: 0.7748