USDX (USD Index)
U.S dollar index forming floor at 93.00 support and the index start to look bullish. The bull is currently trying to break higher above previous high at 93.50. If the bull manages to bring the index up, it will target 94.00 resistance. Will we see a Santa rally on U.S dollar index this month?
News to watch
ADP Non-Farm Employment Change, actual 190k vs. 189k expectation
10.30 AM U.S Crude Oil Inventories, expectation deficit of 3.2 million barrels.
07.30 PM Australia Trade Balance consensus 1.36b
For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 Dec 2017
Technical Analysis
EUR/USD
The pair is out of range right now and risks more downside. If the pair closed below 1.1820 support level, it might continue the correction toward 1.1710 before Friday Non-farm employment data release. A return above 1.1820 will bring the pair back for 1.1925 challenge.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1850, 1.1925, 1.2000
GBP/USD
GBP/USD closed near 1.3450 on Tuesday which indicate false breakout. However, the bear does not give up and make another push downward today. The pair is back on the downward scenario toward 1.3300 – 1.3330 area. What happened near the area will depend on market reaction to the Non-farm employment data released on Friday.
Today critical level to watch:
Support: 1.3342, 1.3300, 1.3250
Resistance: 1.3400, 1.3450, 1.3500, 1.3600
USD/JPY
USD/JPY closed above 112.50 but not a decisive close. The pair undergoes another selling attempt as Nikkei sold-off today. The weakness of Nikkei result in strong yen and push USD/JPY lower. Fortunately, the downward pressure contained at 112.00. If the bull could make another close above 112.50, it will overturn the bearish pressure.
Today critical level to watch:
Support: 112.00, 111.60, 111.00
Resistance: 112.50, 113.20, 114.50
AUD/USD
The flip level on AUD/USD daily chart proven its value and put a major stop to the bull. The pair currently sold and targeting the bottom of the range at 0.7550. Traders could look for long position near the bottom, but a move below 0.7530 must raise the alarm and suggest more weakness.
Traders could wait to place long position at 0.7500, and the level is stronger support and best location for a long position.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7630, 0.7690, 0.7750, 0.7800