USDX (USD Index)
A lower and consistent close in the previous week leads U.S dollar index lower. The index found support near the blue trendline and tried to bounce from it. Unfortunately, the red trendline emerges as proven resistance for the index. This week, it might continue to move lower.
News to watch
10.30 PM Australia Cash Rate, the market expectation the rate stay unchanged at 1.5%.
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 February 2017
Technical Analysis
EUR/USD
Traders might expect a broke lower in EUR/USD, but the pair resiliently closes above its support trendline. The price of EUR/USD looks will test the 1.0800 – 1.0825 resistance again this week. If the price manages to close higher than the resistance area, it will continue higher toward 1.0910 – 1.0960 area.
Today critical level to watch:
Support: 1.0710, 1.0640, 1.0590, 1.0562, 1.0500
Resistance: 1.0800, 1.0825, 1.0910
GBP/USD
Tumbling after the price reached 1.2670, GBP/USD on the journey to find new support level. The nearest seen support at 1.2480 – 1.2550 area, but if the area cannot contain bearish pressure by the bear, it should move lower toward H4 SMA 200.
Today critical level to watch:
Support: 1.2480, 1.2400, 1.2380
Resistance: 1.2500, 1.2550, 1.2670, 1.2800
USD/JPY
USD/JPY made a crucial close in the previous week. The price maintained above 112.50 which deter more selling. If it can form bullish formation this week, it is possible for the price to bounce and reach 115.90. Otherwise, a break below 112.50 will open the way toward 110.50.
Today critical level to watch:
Support: 112.56, 112.00, 110.50
Resistance: 112.87, 114.00, 114.20, 115.00, 115.90
AUD/USD
The bull dominance in AUD/USD seen as the price claimed close above 0.7660. RBA will kickstart the week with interest rate announcement. Meanwhile, AUD/USD expected to move sideway near the resistance and spark new movement after the rate announcement. Traders will observe long position near the green trendline, while also watch how price react at 0.7700 – 0.7750 resistance.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523, 0.7500, 0.7421
Resistance: 0.7688, 0.7748