USDX (USD Index)

U.S dollar index survived the selling done by the bear on Wednesday and managed to close the day above Tuesday bullish candlestick. It is a sideways situation for the index, and there is no winner yet. However, the position of the index is at the bottom of the channel and 92.00 support. U.S Non-farm employment data loom, and there could be bounce happening soon.

News to watch

08.30 AM U.S Non-Farm Employment Change, forecast 190k job added

08.30 AM U.S Unemployment Rate, estimated flat at 4.1%

10.00 AM U.S ISM Non-Manufacturing PMI, forecast reading of 57.6

For full outlook for this week, you can follow Forex Outlook For The Week 1 – 5 Jan 2018

Technical Analysis

EUR/USD

EUR/USD closed near 1.2070 and ready to challenge previous year high as Non-farm employment data loom. The location is not ideal for a long position, and the market could turn the pair down if the result shows strong number. It is better to stay sideways for now and wait for either breakout or rejection from 1.2070.

Today critical level to watch:

Support: 1.2000, 1.1925, 1.1850

Resistance: 1.2070, 1.2091

GBP/USD

No change to the current analysis of GBP/USD, 1.3600 continue work as resistance and the pair hovering in the middle of 1.3450 – 1.3600. U.S news should become the driver for GBP/USD movement today. It could either move down or move up from current level, but traders could look for position when 1.3450 or 1.3600 reached.

Today critical level to watch:

Support: 1.3500, 1.3450, 1.3400, 1.3342

Resistance: 1.3600

USD/JPY

USD/JPY bounced comfortably once again from 112.00 – 112.50 area as expected. The bullish leg started by this bounce might continue and clear Dec’17 high. If the high cleared, the pair has a chance to reach 114.50 -115.00.

Today critical level to watch:

Support: 112.50, 112.00, 111.60

Resistance: 113.20, 114.50