USDX (USD Index)
On Tuesday, the bull brought U.S dollar index up and close above its upper bearish channel. The close above the channel might overturn current bearish trend and bring the index above 100.64 resistance level. Traders might need to wait until a close above 100.64 before fully loaded long position in U.S dollar.
News to watch
10.30 AM U.S crude oil inventories estimate 2.529 million barrels surplus.
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 February 2017
Technical Analysis
EUR/USD
Breakout lower below bullish blue trendline after the price touched 1.0800 – 1.0825 area is significant. EUR/USD currently stick inside the 1.0640 – 1.0710 area. Traders will wait for a breakout lower below 1.0640 to hold the short position in the new bearish leg.
Today critical level to watch:
Support: 1.0640, 1.0590, 1.0562, 1.0500
Resistance: 1.0710, 1.0800, 1.0825, 1.0910
GBP/USD
A solid bullish candlestick formed on GBP/USD daily chart, the candle touch trendline and surpass 1.2500 resistance. The candlestick confirms the existence of the bull at the trendline and increases the likelihood for the price to appreciate further.
Today critical level to watch:
Support: 1.2500, 1.2480, 1.2400, 1.2380
Resistance: 1.2550, 1.2670, 1.2800
USD/JPY
Interesting candlestick on the USD/JPY daily chart. The price close as bullish candlestick on the 2nd day after the break below 112.50. If the price close above 112.50 on the 3rd day, it will trigger false break and pull the price upward.
Today critical level to watch:
Support: 112.00, 111.62, 110.50
Resistance: 112.56, 112.87, 115.90
AUD/USD
A large bearish candlestick formed on AUD/USD daily chart. The price moves lower and looks to test the green trendline. Although the bearish candlestick size is big, it is insignificant compared to the total upward movement since the price bounce from 0.7160 area. Traders could expect more upward in the pair after the bearish pressure diminished.
Today critical level to watch:
Support: 0.7590, 0.7550, 0.7523, 0.7500, 0.7421
Resistance: 0.7660, 0.7688, 0.7748