USDX (USD Index)
U.S dollar index is rolling down lower than the 102.00 support level. This lower close opens a bearish scenario before Non-Farm employment data if the result in lines with the expectation or better the index might bounce and close above 103.65. Otherwise, a worse than expected number could trigger more sell-off toward 100.
News to watch
08.30 AM U.S Average Hourly Earnings m/m, expected to increase 0.3% monthly
U.S Non-Farm Employment Change, estimate an increase of 175k
U.S Unemployment Rate, consensus 4.7%
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 January 2017
Technical Analysis
EUR/USD
The bull taking control of EUR/USD in H4 chart, the price moving up after it failed in an attempt to bring the pair lower than the green area. Traders are waiting for Non-farm employment data today, and there is possibility price spike toward 1.0800 happen after the data release.
Today critical level to watch:
Support: 1.0562, 1.0500, 1.0479, 1.0435, 1.0400
Resistance: 1.0580, 1.0640, 1.0710, 1.0800
GBP/USD
GBP/USD successfully close above its H4 SMA 200, though the pair slide back below the averages to test the broken S-R 1.2388. Today trading session might provide GBP/USD bull with a chance to bring the price toward 1.2500.
Today critical level to watch:
Support: 1.2388, 1.2375, 1.2333, 1.2300, 1.2270
Resistance: 1.2400, 1.2480, 1.2500
USD/JPY
The bullish pin bar in USD/JPY triggered when the price move above the high of the candlestick, but not confirmed as no closing price above the pin bar high yet. The pair clinging near 115.90 and another push lower below this level will trigger more selling possibly to 110 in the long term.
Today critical level to watch:
Support: 116.00, 115.90, 115.00, 114.20
Resistance: 116.80, 117.80, 108.00, 118.80, 120.00, 121.48
AUD/USD
The bearish engulfing pattern formed near the 50% Fibonacci Retracement level also the H4 SMA 200. This pattern is significant, but with major news on schedule, AUD/USD might move wildly and disregard all recent pattern.
Today critical level to watch:
Support: 0.7300, 0.7286, 0.7239, 0.7225, 0.7195, 0.7160
Resistance: 0.7340, 0.7370, 0.7400