USDX (USD Index)
The U.S dollar index sharply higher today after it bounces from 100.64 support level. The index looks to continue its upward movement and close higher than the previous extreme high located at 101.76. If the index manages to move past the 101.76 extreme high, it still needs to close higher than the 102.00 – 102.60 resistance area. Otherwise, it will reaffirm the shoulder-head-shoulder pattern on daily chart.
News to watch
05.00 AM UK Inflation Report Hearings
04.30 PM Australia RBA Gov Lowe Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 February 2017
Technical Analysis
EUR/USD
EUR/USD pair controlled by the bear as it falls below the support level. The close below 1.0590 put the pair under risk and will test 1.0520 low soon, if the support is broken, we will see a continuation of the long-term trend in EUR/USD. The journey to parity in EUR/USD might continue next month if new low created.
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
Moving inside the triangle consolidation pattern, GBP/USD touch 1.2480 and move lower. The pair will continue its downward movement to the bottom of the triangle and test it. A close outside of triangle will need a close below 1.2388 to confirm the strength of the bearish trend.
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
Another attempt at the top of the channel on the line for USD/JPY. The pair moves up after it reverses the selling pressure near 112.50. If break happens, traders will see the pair reach 115.90. Although the outlook is bullish, rejection at the top channel still a higher odds scenario.
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
The bullish course of AUD/USD grows weaker each day as the pair stumbles below 0.7688 flip line. The correction happened in the pair might be resulted from an anticipation of Gov Lowe speech this evening. 0.7625 will act as the support if the price manages to move near it.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523
Resistance: 0.7688, 0.7748