USDX (USD Index)
Zooming in the lower time frame of U.S dollar index, traders will see the index struggling near its trendline. There are two trendlines which protected the index from further decline. If the index bounce from the current level, it will form bullish triangle pattern which if triggered will lead the index higher.
News to watch
Soft trading day with less news to watch
For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 February 2017
Technical Analysis
EUR/USD
The emergency bounce from 1.0513 proved to be successful and lead EUR/USD up near its bearish trendline where resistance 1.0590 present. Currently, the price poked above the resistance, if it could close higher above the resistance level, traders will see more upward movement.
Today critical level to watch:
Support: 1.0562, 1.0513, 1.0500
Resistance: 1.0590, 1.0640, 1.0710, 1.0800
GBP/USD
The bull is holding tight grip near the 1.2550 resistance level. It looks impatient to break the resistance and will not budge. If the bear is unable to reverse the upward pressure in several hours, we will see a breakout upside.
Today critical level to watch:
Support: 1.2500, 1.2480, 1.2400, 1.2380, 1.2333
Resistance: 1.2550, 1.2670, 1.2800
USD/JPY
Bearish pressure mounting in USD/JPY as the price challenging 112.50 support level. If USD/JPY manage to close below the support level, we will see continuation toward 110.50 support level in the medium-term.
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
Bullish trend of AUD/USD faces potential setback after it reaches the top of consolidation range at 0.7748. The price might fall toward 0.7688 and look for support before it continues the upward movement.
Today critical level to watch:
Support: 0.7688, 0.7660, 0.7590, 0.7550, 0.7523
Resistance: 0.7730, 0.7748