USDX (USD Index)

U.S dollar index slipped below its previous low and weak across the board. There is no major support below the level, and the trend should continue bearish. On the weekly chart, we could see previous upward movement had not much resistance to reach 92.00.

The bull needs to bring the index back above 92.00 and 93.00 to create a double bottom pattern. The possibility of bounce is slim. On the other hand, weekly chart confirms the index break and bounce from the WSMA 200.

News to watch

U.S market is in Martin Luther King Jr. Day holiday

For full outlook for this week, you can follow Forex Outlook For The Week 15 – 19 Jan 2018

Technical Analysis

EUR/USD

Nothing to write yet on EUR/USD after the pair breakout above 1.2070 and the bullish channel. The pair could continue its uptrend following the weakness from U.S dollar index side. Traders could use top of channel and 1.2070 as the level to look for a long position.

Today critical level to watch:

Support: 1.2200, 1.2100, 1.2070, 1.2000

Resistance: –

GBP/USD

A major breakthrough happened on GBP/USD pair. The bull pushed the pair above previous year high and temporarily broken the post-Brexit level. If the bull could maintain bullish momentum, we might see 1.3850 – 1.4000 challenged soon. Long position from 1.3600 might be a good idea.

Today critical level to watch:

Support: 1.3600, 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3850, 1.4000

USD/JPY

USD/JPY escaped the break and closed below 111.00 on Friday. However, the pair experienced sell-off today below the level and currently testing 110.50. The same question as last week, will the pair bounced from the support level and closed above 111.00 again?

Today critical level to watch:

Support: 110.50

Resistance: 111.00, 111.60, 112.00, 112.50

AUD/USD

AUD/USD bull is unstoppable after the close above 0.7875. The pair tested the broken resistance in one day and widened the distance on Monday. Today, the pair almost reached the resistance 0.7970. We expect it will hit 0.7970 – 0.8000 this week and stalled until the final direction of U.S dollar index settled.

Today critical level to watch:

Support: 0.7875, 0.7800, 0.7750, 0.7690

Resistance: 0.7970, 0.8000