USDX (USD Index)
The downward movement in U.S dollar index reached an important point where major trendline support present. If the index could move higher and break the upper side of the red channel, then we will see a continuation of the bullish trend. Meanwhile, the index is also positioning itself before this Friday inauguration, under the current situation, it might have limited movement between support and resistance level.
News to watch
04.30 AM UK Average Earnings Index estimate 2.6% increase annualized from 3-month data.
04.30 AM UK Claimant Count Change, consensus 4.6k
08.30 AM U.S CPI, estimated increase of 0.3% monthly
08.30 AM U.S Core CPI, consensus increase of 0.2% monthly
03.00 PM Fed Chair Yellen Speaks
07.30 PM Australia Employment Change, consensus increase of 10.2k and unemployment rate at 5.7%
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 January 2017
Technical Analysis
EUR/USD
EUR/USD upward movement stopped at 1.0640 – 1.0710 resistance area. The price expected to move inside the range until it establishes the new trend. This resistance area is one of the good places to place short position with a tight stop-loss. Though the final target of bullish movement is the 1.0800 – 1.0825 area.
Today critical level to watch:
Support: 1.0640, 1.0580, 1.0562, 1.0500, 1.0479
Resistance: 1.0710, 1.0800, 1.0825
GBP/USD
Sudden upward momentum in GBP/USD brought the price above H4 SMA 200 and violated trendline. The trendline violation is initial indication that the upward movement will continue. However, the pair needs to stay above H4 SMA 200 to maintain the bullish trend.
Today critical level to watch:
Support: 1.2330, 1.2300, 1.2270, 1.2230
Resistance: 1.2380, 1.2400
USD/JPY
USD/JPY ticking down, the price close below 114.00 also 113.00. This recent close below the support level confirmed more weakness on the table. Without any change in the trend, we will see 110.00 – 110.50 soon.
Today critical level to watch:
Support: 112.87, 112.00, 110.50, 110.00
Resistance: 114.00, 114.20, 115.00, 115.90
AUD/USD
The close above 0.7550 in AUD/USD open up the road higher and reverse medium-term trend into bullish. Nearest resistance to watch is the green trend line, and above it, we have 0.7660 as Fibonacci Retracement target level.
Today critical level to watch:
Support: 0.7550, 0.7523, 0.7500, 0.7421, 0.7400
Resistance: 0.7590, 0.7660