USDX (USD Index)
U.S dollar index is moving near the top of red downtrend channel. The short-term trend for the index is down which might put the index down after it touches the channel. Medium-term, we expect the index continue moving toward the blue trend line and bounce from it. If no bounce happens at the trendline, we could expect the bullish trend in U.S dollar already finish.
News to watch
A light trading day without major news today.
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 February 2017
Technical Analysis
EUR/USD
EUR/USD once again back near the 1.0710 support level, this support level has proven itself as a reliable support. However, the bounce from this level grow weaker after each bounce, and it might give way at the lower range.
If 1.0710 broken, we will see EUR/USD moving inside 1.0640 – 1.0710 range before next breakout.
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
The price of GBP/USD moving lower and found support at the H4 SMA 200. The price might bounce inside the 1.2480 – 1.2500 area, on medium-term the bearish pressure mounting and might put the pair further lower.
Today critical level to watch:
Support: 1.2480, 1.2400, 1.2380
Resistance: 1.2500, 1.2550, 1.2670, 1.2800
USD/JPY
The bear finally breaches 112.50 support in USD/JPY. This breach is a crucial moment for the bull, if the pair could return up above 112.50 today and form a bullish pattern, the trend should reverse. Otherwise, the price will continue moving lower toward 110.50 without any pause.
Today critical level to watch:
Support: 111.62, 110.50
Resistance: 112.00, 112.56, 112.87, 114.00, 114.20
AUD/USD
The bullish intention of the bull shown clearly by two large bullish candlesticks in the H4 chart. The price is moving sharply higher despite the location of the candlestick which is near the extreme high. The outlook extremely bullish for AUD/USD and we will see the price climb higher from the current level.
Today critical level to watch:
Support: 0.7660, 0.7590, 0.7550, 0.7523, 0.7500, 0.7421
Resistance: 0.7688, 0.7748