USDX (USD Index)
U.S dollar index stays on the defensive this entire week, and the index limited below 91.00. There is no change to the medium-term trend which is down. However, there is the possibility of technical bounce before further downside. The nearest support to watch is 90.00
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
This week EUR/USD print new fresh high and building more bullish sentiment. However, it looks like the pair will need to wait until next week to continue its uptrend. On the other side, retracement might happen. Traders will observe the pair reaction near the top of the blue channel.
Today critical level to watch:
Support: 1.2200, 1.2100, 1.2070, 1.2000
Resistance: –
GBP/USD
GBP/USD breakthrough above 1.3600 used by the bull to brought the pair further upside. The pair currently traded between 1.3800 – 1.4000 area. If the bullish momentum maintained, we might see 1.4000 challenged next week. Meanwhile, traders could use the range shown on the daily chart to trade.
Today critical level to watch:
Support: 1.3850, 1.3800, 1.3600, 1.3500, 1.3450
Resistance: 1.4000
USD/JPY
The bull stays vigilant as USD/JPY testing 110.50 support. The test yield in a bullish engulfing pattern, but there is no confirmation yet. Today, the bear made another test on 110.50 support. Next week trend might be determined by where the pair closed by the end of the day.
Today critical level to watch:
Support: 110.50
Resistance: 111.00, 111.60, 112.00, 112.50
AUD/USD
AUD/USD bull is charging on 0.8000 relentlessly this week. There is no close yet above the resistance level, but it looks like the bear losing grip slowly. It will be interesting to watch where the pair located at the end of this month. Will the bull break above the resistance? Alternatively, will the bull hand over the baton to the bear and drive AUD/USD down?
Today critical level to watch:
Support: 0.7875, 0.7800, 0.7750, 0.7690
Resistance: 0.7970, 0.8000