USDX (USD Index)
The bull was initially able to bring the price up, outside of the triangle. However, in the rally is short-lived and the bear takes grip on the market to bring it lower below broken triangle level. The price visits its broken trendline and shows a little bounce. Although it could be seen as a positive sign, the candle which represents bounce is small and insignificant compared to the big bear candle before it.
We expect more slide in the U.S dollar index today and a bullish reversal candle from the trendline.
News to watch
07.30 PM Australia GDP, estimate increase of 0.2% quarterly.
For full outlook for this week, you can follow Forex Outlook For The Week 5 – 9 December 2016
Technical Analysis
EUR/USD
The bull successfully pushed the price up above 1.0710 which turn the situation into short-term bullish. 1.0800 – 1.0825 is the next resistance area which might also break today depend on how the price reacted if it corrected to 1.0710.
If the resistance gives way, EUR/USD might reach 1.0910 with ease.
Today critical level to watch:
Support: 1.0710, 1.0640, 1.0600, 1.0580, 1.0562
Resistance: 1.0800, 1.0825, 1.0910
GBP/USD
Similar situation as Yesterday, GBP/USD stick at the top of the channel and in-track to reach 1.2800. The bull is strong, but this could mean possible quick correction toward the lower part of the channel if the price stays sideway.
Today critical level to watch:
Support: 1.2700, 1.2670, 1.2650, 1.2600, 1.2580
Resistance: 1.2800, 1.2850, 1.3000
USD/JPY
USD/JPY bounced from the bottom part of the channel, and the price capped around 114.70 – 114.80. Traders will expect the price to continue moving inside the channel.
Today critical level to watch:
Support: 113.33, 113.00, 112.80, 112.3, 111.34
Resistance: 113.89, 114.20, 115.90
AUD/USD
There is rate announcement today from RBA which will invite volatility in AUD/USD pair. The pair manages to close higher above 0.7400 – 0.7420 area but the bear draw a line and put the bull below the channel.
Will it move up inside the channel after rate announcement? Alternatively, will it break lower than 0.7400 again?
Today critical level to watch:
Support: 0.7450, 0.7420, 0.7400, 0.7370
Resistance: 0.7500, 0.7550