USDX (USD Index)
U.S dollar index makes a comeback and reaches 94.00 resistance today. The move completed as Non-farm employment data show better than expected result. The actual result shows U.S add 228k jobs in the previous month, higher than 198k expectation. Unemployment rate stable at 4.1%.
We expect the index will close inside 93.00 – 94.00 range and continue its consolidation in coming week. Traders will observe the index closing level and determine next week trend.
News to watch
U.S Non-Farm Employment Change actual 228k vs. 198k expectation. Unemployment Rate inline with expectation of 4.1%
For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 Dec 2017
Technical Analysis
EUR/USD
EUR/USD continues its downward movement and almost reach 1.1710 support level. However, there is mini reaction before the pair reaches 1.1710. If the pair could close the day above its opening level, it might stop the descend and start a bullish movement next week.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1850, 1.1925, 1.2000
GBP/USD
The bull loses its bid and stumbled today after attempting to move the pair higher above previous day high. The upward pressure has receded, and GBP/USD might close below 1.3450. The closure below 1.3450 suggests further consolidation between red trendline and 1.3450.
Today critical level to watch:
Support: 1.3400, 1.3342, 1.3300, 1.3250
Resistance: 1.3450, 1.3500, 1.3600
USD/JPY
USD/JPY is challenging 113.20 and manage to move above it today. However, the upward momentum slowed and reversed in European session. If the bear could close the price below 113.20, it might start a bearish move in coming week. The trend slowly switches to bearish, and the downward movement will attempt to print lower low at 110.50.
Today critical level to watch:
Support: 112.50, 112.00, 111.60, 111.00
Resistance: 113.20, 114.50
AUD/USD
AUD/USD has reached the major level 0.7500 today where there is some bid which supports the pair. Overall, the outlook still bearish for the pair and bounce from this level is regarded as a technical bounce. The bounce could reach at least 0.7550 with extension to daily SMA 200.
A closure below 0.7500 is a bearish sign and could lead to a severe breakdown. Expect some support testing and a long position covering before major reversal.
Today critical level to watch:
Support: 0.7500
Resistance: 0.7550, 0.7630, 0.7690