USDX (USD Index)
A technical bounce happened in U.S dollar index from its lower part of the red channel. The bounce brought the index up toward its proxy line, observing the situation, it looks like the index might continue higher toward the upper part of the red channel.
News to watch
07.45 AM EUR Minimum bid rate
08.30 AM ECB press conference
U.S building permit, estimate 1.22M permits issued in previous month
Philly Fed manufacturing index, consensus reading of 16.3
Unemployment claims, estimate 252k
11.00 AM Crude oil inventory, forecast 0.1 million barrels surplus compared to previous week.
08.00 PM Fed Yellen speech
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 January 2017
Technical Analysis
EUR/USD
The price of EUR/USD experienced a setback after it touched 1.0710. It closed below 1.0640 in the daily chart and prompted for more weakness today. Although the outlook stays bearish, close confirmation below the upward trend line needed. If the price manages to close lower, it has target at 1.0590 and 1.0500.
Today critical level to watch:
Support: 1.0590, 1.0562, 1.0500, 1.0479
Resistance: 1.0640, 1.0710, 1.0800, 1.0825
GBP/USD
While it is bullish, GBP/USD still at risk as long as the 1.2430 high is not taken by the bull. There is a chance the pair will continue lower to test the support area first around 1.2200 – 1.2230 before resuming its upward movement.
Today critical level to watch:
Support: 1.2230, 1.2200
Resistance: 1.2270, 1.2300, 1.2330, 1.2380
USD/JPY
Bullish engulfing setup in USD/JPY daily chart. The bull show resistance around 112.60 level and put the price up, if it can continue the buying pressure, we might see 115.90 or higher soon.
Today critical level to watch:
Support: 114.20, 114.00, 112.87, 112.60, 112.00
Resistance: 115.00, 115.90
AUD/USD
A successful close above the daily SMA 200 put AUD/USD in nice track toward the higher path. Fortunately, the bull also maintained its advantage above the daily SMA 200. If today we have a bullish setup above the daily SMA 200, then we will see AUD/USD near its green trendline soon.
Today critical level to watch:
Support: 0.7523, 0.7500, 0.7421, 0.7400
Resistance: 0.7550, 0.7590, 0.7660