USDX (USD Index)
U.S dollar index suddenly dropped from 98.25 support level and closed near the daily SMA 200. The index might continue lower and reach the averages soon. When the index hits the support level then a bounce may happen. However, at the current time, there is no clue yet.
Traders will await the reaction of the market near the support level. As long as there is no major bearish close below the averages then the U.S dollar index expected to continue its bullish trend.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 02 – 06 December 2019
EUR/USD
EUR/USD bounced from 1.1000 support level yesterday, the pair has strong bullish momentum and might continue toward 1.1120. Traders will continue to hold long positions for now and wait for a further reaction from the market. If 1.1120 reached then there is daily SMA 200 above the level to limit the upside movement in the pair.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
Short positions are the logical action to take in GBP/USD now as the pair reach the top of the consolidation range of 1.2800 – 1.3000. If there is no change to the situation then we could expect GBP/USD to start moving lower and target 1.2800.
Today Critical level to watch:
Support: 1.2800, 1.2625, 1.2600, 1.2500
Resistance: 1.3000
USD/JPY
USD/JPY rejected from 109.70 before it could reach 110.00 resistance. The path is rocky for the bull and today the price attempting to move below daily SMA 200. Will the pair bounce from the SMA 200 and continue its upward movement?
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 109.00, 110.00
AUD/USD
AUD/USD extends its bullish movement after the previous day bullish close near 0.6820. No stop to the bullish momentum yet and the pair might target SMA 200. Traders might want to stay sideline for now and wait for a further reaction from the market. Short positions near the SMA 200 is a scenario trader could consider.
Today critical levels to watch:
Support: 0.6750, 0.6700
Resistance: 0.6800, 0.6820, 0.6900