USDX (USD Index)

The bear is in control today and U.S dollar index under heavy pressure near 92.00. It is possible for the index to break down today as bond market jitter continues in the U.S. If the index slide further, we might see a possible test of 2017 low.

News to watch

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

Technical Analysis

EUR/USD

Positive ECB meeting today is a big vitamin for Euro. The currency advances against U.S dollar and confirms the technical setup bounce from 1.1925. The pair might test 1.2070 today or before the end of this week.

Today critical level to watch:

Support: 1.1925, 1.1850

Resistance: 1.2000, 1.2070, 1.2091

GBP/USD

GBP/USD traded between 1.3450 -1.3600, and today the pair bounced from the bottom range. Traders could expect the pair will move and test 1.3600 soon. As long as the range not broken, traders could continue to trade the range.

Today critical level to watch:

Support: 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3600

USD/JPY

The bull has lost all reasons to stay long in USD/JPY after 112.00 broken. The pair breakout below 112.00 also closed below daily SMA 200. Today, there is an upward correction but received by rejection near SMA 200 and 112.00. We could expect USD/JPY will continue its downward movement and test 110.50.

Today critical level to watch:

Support: 111.00, 110.50

Resistance: 111.60, 112.00, 112.50, 113.20, 114.50

AUD/USD

AUD/USD bounced from a level near 0.7800 and reached 0.7875 today. There is strong momentum, and the resistance could be broken by the end of the day. Traders could use 0.7875 as entry-level later when the price make a correction after the rally from 0.7875.

Today critical level to watch:

Support: 0.7800, 0.7750, 0.7690

Resistance: 0.7875