USDX (USD Index)
There was bullish close in the previous day from 88.80 support level, but it is not convincing to secure a bounce today. U.S dollar index makes another attempt on 88.80 support. There is no break below the level yet, but as long as the sentiment continue bearish, we might have a close below the support by the end of the day.
Will the index bounce from the current level and move toward the broken channel?
News to watch
04.30 AM UK Prelim GDP q/q, forecast 0.4% increase
08.30 AM U.S Advance GDP q/q, forecast 3.0% increase
U.S Core Durable Goods Orders m/m, forecast 0.5% increase
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 Jan 2018
Technical Analysis
EUR/USD
A higher high printed on the previous day session, but at the end of the day, EUR/USD decide to close lower. Today, the bull returned and pushed the price higher again. Traders could observe the price reaction at the top, and if there is selling reaction, we might see EUR/USD start moving lower.
Today critical level to watch:
Support: 1.2300, 1.2200, 1.2100, 1.2070, 1.2000
Resistance: 1.2500
GBP/USD
GBP/USD closed on the bearish side yesterday. The bearish close after resistance test suggest possible reversal, but it could also mean profit-taking action before further upside. Today the bull bring the pair back to previous day opening level and indicate previous day bearish close was profit taking action. Traders might want to stay out of short position for now.
Today critical level to watch:
Support: 1.4000, 1.3850, 1.3800, 1.3600
Resistance: 1.4250
USD/JPY
Today USD/JPY topic will revolve around,”Will the pair manage to hold out above 109.00″? Traders will wait for the daily/weekly close before placing long position.
Today critical level to watch:
Support: 109.00
Resistance: 110.50, 111.00, 111.60
AUD/USD
The bounce in commodity prices this year helped AUD/USD to attain the level above 0.8000. The pair also made re-test on the level near 0.8000 today. The bullish reaction near 0.8000 indicates there is more upside for AUD/USD. Traders could continue holding the long position until strong bearish reversal pattern appear.
Today critical level to watch:
Support: 0.8000, 0.7970, 0.7875, 0.7800
Resistance: –