USDX (USD Index)
The bounce from flip level shown on the daily chart put U.S dollar index higher, but it loss its upward momentum. On the last trading day of the week, it looks like the index will settle between 93.00 – 94.00 once again. There is no clue yet for next direction and traders might want to stay sideway.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 Dec 2017
Technical Analysis
EUR/USD
The resistance 1.1820 is respected on the previous day as EUR/USD rejected from it. The price closed lower and back to initial scenario of trading between 1.1710 – 1.1820. Today, there is little buying in the European session. The upward movement is weak and might reverse when U.S session open.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1850, 1.1925, 1.2000
GBP/USD
GBP/USD is holding on near the resistance 1.3450 and looking for break upside. Although the setup looks bullish, there is no reason to place long position at the current level. A short position is more appealing especially if the pair break below 1.3300.
Today critical level to watch:
Support: 1.3400, 1.3342, 1.3300, 1.3250
Resistance: 1.3450, 1.3500
USD/JPY
USD/JPY failed to close above 112.50 and risk more downside in coming days. The pair is currently testing 112.00 support. There is daily SMA 200 below the level which might act as support. If the bull could close the pair above 112.50, it will stop the selling and provide another chance to test resistance (The black trendline)
Today critical level to watch:
Support: 112.00, 111.60
Resistance: 112.50, 113.20, 114.50
AUD/USD
Final correction target achieved by the bull on AUD/USD after it touched daily SMA 200. Because of the strong upward momentum, there is the possibility the pair could break above the averages and continue upward. Traders could observe the pair reaction at the averages and enter a short position on weakness.
Today critical level to watch:
Support: 0.7630, 0.7550, 0.7500
Resistance: 0.7690, 0.7750