USDX (USD Index)

U.S dollar index upward movement hit $92.64 before stall and move down today. The bearish reaction is mild and contained by the bull. If there is no major change in sentiment, U.S dollar index might start the climb again later in U.S trading session.

News to watch

10.30 AM U.S Crude Oil Inventories, forecast deficit of 3.9 million barrels.

For full outlook for this week, you can follow Forex Outlook For The Week 8 – 12 Jan 2018

Technical Analysis

EUR/USD

The downward movement of EUR/USD found support at 1.1925 and produce mini bounce today. Is it the best time to look for a long position? The answer might be yes as the prevailing trend of EUR/USD is bullish.

Today critical level to watch:

Support: 1.1925, 1.1850

Resistance: 1.2000, 1.2070, 1.2091

GBP/USD

The bear is shy on the GBP/USD daily chart, there is selling but no lower close. Today, the pair print new low but the bull push the price back near opening level. There is possibility GBP/USD will continue moving higher in the U.S trading session.

Today critical level to watch:

Support: 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3600

USD/JPY

USD/JPY finally breakdown today after persistently maintaining the position above 112.00. The breakdown is severe and suggests 112.00 will turn into resistance in the next visit. Traders could use daily SMA 200 or 112.00 as levels to look for a short position.

Today critical level to watch:

Support: 111.00, 110.50

Resistance: 111.60, 112.00, 112.50, 113.20, 114.50

AUD/USD

The bull makes the pair bounced from 0.7807 today and confirm the range 0.7800 – 0.7875. Currently, the pair ready to test 0.7875. If breakout happens, traders could use 0.7875 as the level for long entry.

Today critical level to watch:

Support: 0.7800, 0.7750, 0.7690

Resistance: 0.7875