USDX (USD Index)
U.S dollar index cleared 100.64 resistance and shoved away the bear. The close above 100.64 put the index on a bullish train, and we could expect the right shoulder test soon. If the price manages to close above 102 and later 104, we will see the long-term continuation of a bullish trend.
News to watch
U.S Bank President’s day holiday
07.30 PM Australia Monetary Policy Meeting Minutes
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 February 2017
Technical Analysis
EUR/USD
Profit taking happened in EUR/USD as it approaches a level near 1.0710. The pair currently under bearish pressure but supported and might bounce. The bounce will be limited at 1.0640 though and traders will look for an opportunity to place short position at the resistance.
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
GBP/USD fell after it tests the upper blue trendline which is also 1.2500 resistance. The price rejected and slumped to support trendline. Both trendlines formed a triangle pattern which becomes new consolidation range for GBP/USD. Traders will trade inside the consolidation while waiting for a break outside of the range.
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
Even though the bearish scenario in play for USD/JPY, the price found support at 112.50. If the price manages to bounce and close above its bearish channel, we will see a continuation of the bullish trend. A close below 112.50 will help the price to reach initial bearish scenario target at 110.50.
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
A sharp decline below the 0.7688 support level put the pair near 0.7660 support level where trendline support present. If the price bounce, 0.7688 will act as resistance and traders could look for a short position at that level. Otherwise, a break below 0.7660 also the trendline, will put AUD/USD into a further correction.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523
Resistance: 0.7688, 0.7748