USDX (USD Index)
U.S dollar index is drifting lower after the previous day bearish close. The index looks to test its trendline before it reverses the bearish pressure. If the index manages to close above 102.00, we will see a continuation of the long term bullish trend.
News to watch
08.30 AM U.S Unemployment Claims, estimate 242k benefit claimed in the previous week.
11.00 AM U.S Crude Oil Inventories, estimate 3.4 million surpluses in the oil inventory
05.30 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
Emergency bounce happened in EUR/USD, and the pair fell lower below its previous swing low at 1.0520. Today, the pair might attempt to move higher above 1.0560 which is short-term flip level. If it can move higher than 1.0678, it will continue higher and cancel all short-term bearish view.
Today critical level to watch:
Support: 1.0513, 1.0500
Resistance: 1.0562, 1.0590, 1.0640, 1.0710, 1.0800
GBP/USD
The first close out of triangle pattern quickly rejected by the 1.2500 resistance. Today, GBP/USD make another attempt outside of the triangle range and back at 1.2500. Will it able to break the resistance this time?
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
Unable to move higher above its bearish trendline, USD/JPY risked more downside as the price rejected at the top of the channel. If the pair slides lower than 112.50, it will confirm the next downward movement to 110.50.
Today critical level to watch:
Support: 112.56, 112.00, 111.62, 110.50
Resistance: 112.87, 114.00, 115.90, 117.52
AUD/USD
No stopping in the AUD/USD bullish movement, the pair initiated a sharp bullish candlestick from 0.7688 low. There is only previous high at 0.7730 and 0.7748 resistance for the pair to break above. Traders could look for a short position if the pair failed to close higher than 0.7748 and formed a bearish pattern.
Today critical level to watch:
Support: 0.7688, 0.7660, 0.7590, 0.7550, 0.7523
Resistance: 0.7730, 0.7748