USDX (USD Index)

U.S dollar index attempt to bounce yesterday, but at the end of the day closed near its opening level. Today, the bear pushed the price lower and printed fresh low, but the bull return and drive the index up. The situation looks like a draw between the bull and the bear and might continue until the end of the day.

News to watch

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

Technical Analysis

EUR/USD

EUR/USD follow previous day analysis; the pair could move upward and continue the uptrend. However, at the same time, there is no significant retracement since the break above the blue channel. Traders could watch 1.2070 as the level to place long position if the pair manages to move reach it.

Today critical level to watch:

Support: 1.2200, 1.2100, 1.2070, 1.2000

Resistance: –

GBP/USD

The upward movement of GBP/USD halted below 1.3800 and the price currently trying to break it. Will we see rejection from the resistance or continuation toward 1.4000?

Today critical level to watch:

Support: 1.3600, 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3800, 1.3850, 1.4000

USD/JPY

USD/JPY shows subdued reaction below 111.00, but the bull holding from further sell-off below 110.50. The pair might trade between 110.50 – 111.00 until next direction settled. Traders could use the range to trade both sides with more bearish bias.

Today critical level to watch:

Support: 110.50

Resistance: 111.00, 111.60, 112.00, 112.50

AUD/USD

0.8000 on AUD/USD considered hard resistance to breaking. The pair grazes the level today and show little profit taking. Will the bear push AUD/USD further lower and start a correction toward 0.7800 – 0.7875?

Today critical level to watch:

Support: 0.7875, 0.7800, 0.7750, 0.7690

Resistance: 0.7970, 0.8000