USDX (USD Index)
The index stayed well inside the triangle range and bounced from the bottom at the end of the previous week. Today, the index opened lower and under pressure. We might see another test at the bottom of the triangle soon. This week, there is job data which market will observe. It seems the odds that the Fed will increase the rate for three times have decreased and U.S dollar might weaken for short-term.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 December 2018
Technical Analysis
EUR/USD
EUR/USD might become the focus of the market this month. It is the month where ECB promised will stop the monetary easing. We could expect some movement in the pair this month. If we observe the technical pattern, 1.1300 – 1.1360 is the area where possible W pattern formed. However, at the current time, the pair still stuck inside 1.1300 – 1.1360 which suggest traders trade the range.
Today critical level to watch:
Support: 1.1300, 1.1200, 1.1120
Resistance: 1.1360, 1.1500, 1.1580
GBP/USD
GBP/USD hovering near 1.2800 and showing no indication of next movement yet. The pair range gets tighter and might be ready for a strong movement. Traders will continue to monitor the pair movement between 1.2625 – 1.2800.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.2800, 1.3000, 1.3050, 1.3125
USD/JPY
USD/JPY started the week by moving lower. We think the pair will continue its sideways movement inside the triangle range shown on the chart. Currently, support level 113.20 is the level to watch where traders could look for long positions.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
AUD/USD finally break free from the 0.7300 – 0.7330 resistance area. The pair opened higher more than 50 pips this week and hanging at the middle of 0.7330 and daily SMA 200. Without any change in sentiment, we think the pair will reach the daily SMA 200 soon.
Today critical level to watch:
Support: 0.7330, 0.7300, 0.7200, 0.7160
Resistance: 0.7400, 0.7450, 0.7500