USDX (USD Index)
U.S dollar index continues lower after previous week lower close. The index might continue its bearish move until President Trump inauguration. There is proxy trendline drawn on the H4 chart and the price by far bounce from the proxy trendline. It is possible for the index to reach the blue trendline and test it before continue the bullish trend.
News to watch
04.30 AM UK CPI, estimated an increase of 1.4% annually.
10.00 AM U.S Treasury Sec Lew Speaks
Tentative UK Prime Minister May Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 January 2017
Technical Analysis
EUR/USD
The bear is away in EUR/USD as the pair continue moving up after it touched 1.0590. The close above resistance 1.0640 open an opportunity for the pair to continue further up above the current multiple tops.
Today critical level to watch:
Support: 1.0580, 1.0562, 1.0500, 1.0479
Resistance: 1.0640, 1.0710, 1.0800
GBP/USD
Weak open this week lead GBP/USD lower below 1.2000 which is the final target for the initial bearish move. After the target reached, the stage might switch for the bull, and if it can close the gap, the pair should continue upside. Meanwhile, 1.2100 – 1.2130 is the current consolidation range.
Today critical level to watch:
Support: 1.2100, 1.2000
Resistance: 1.2130, 1.2200, 1.2230, 1.2270, 1.2300
USD/JPY
A weekly close below its previous weekly candlestick put the bullish trend under threat. USD/JPY trend switched to short-term bearish, and there is a possibility the pair will move lower toward 110.50 until it reverses the current trend.
Today critical level to watch:
Support: 112.87, 112.00
Resistance: 114.00, 114.20, 115.00, 115.90
AUD/USD
No stop yet for the bull in AUD/USD. The upward momentum breaches daily SMA 200 which means the trend could switch to bullish soon. AUD/USD bull need to close above 0.7550 and maintain the bullish momentum to trigger more buying.
Today critical level to watch:
Support: 0.7500, 0.7421, 0.7400, 0.7370, 0.7340, 0.7300
Resistance: 0.7523, 0.7550, 0.7590