USDX (USD Index)
The bounce from 92.00 support brought U.S dollar index to close above four days high. The upward momentum continues today and breaches the Monday high. If the bull could maintain the bullish pressure, we might see U.S dollar index reach 93.00 soon. Traders could continue to ride the upward momentum in U.S dollar and cover position when the index reaches 93.00 or top of channel resistance.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 8 – 12 Jan 2018
Technical Analysis
EUR/USD
EUR/USD rejected from 1.2070 and reached 1.1925 today. The pair is fragile and might continue its downward correction and reach 1.1820 or lower. Traders who are looking for the short position might want to avoid shorting at 1.1925 until the support level broken. On the other hand, 1.1925 is a good level for the long position if there is news catalyst for a bounce.
Today critical level to watch:
Support: 1.1925, 1.1850
Resistance: 1.2000, 1.2070, 1.2091
GBP/USD
GBP/USD stay on bullish track but undergo correction period. The pair slightly lower today and might continue its descend to 1.3450. No change to the current analysis and traders could wait until the pair drop lower before placing long position.
Today critical level to watch:
Support: 1.3500, 1.3450, 1.3400, 1.3342
Resistance: 1.3600
USD/JPY
USD/JPY stuck at 113.20 and dropped today to reach 112.50. The pair once again found support today and bought by the bull. Will the pair make another retest of support or it will continue upward and reach 114.50 – 115.00?
Today critical level to watch:
Support: 112.50, 112.00, 111.60
Resistance: 113.20, 114.50
AUD/USD
AUD/USD almost reached checkpoint 0.7800 today as U.S dollar index gained. If the pair follows sideway scenario, traders could expect it will bounce and attempt to move toward 0.7875 again. However, the bearish momentum is strong and possible to break the support level. It is better for traders to stay sideline until bullish pattern emerge.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875