USDX (USD Index)
U.S dollar index hovering inside the consolidation range, the sideway movement should continue as market thinned under holiday session. The range span from 102.50 – 103.60, previous daily candlestick close as bullish pin bar which if triggered might lead the price to the top of consolidation range.
News to watch
04.30 AM UK Current Account, estimated deficit of 28.3 billion
For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 December 2016
Technical Analysis
EUR/USD
More upside possible in the EUR/USD as the price formed pin bar which is not perfect. The pin bar might be ignored by traders, and EUR/USD will test the 1.0500 once again. Traders might need to wait also as we are reaching the end of the year with low volatility.
Today critical level to watch:
Support: 1.0435, 1.0400, 1.0366, 1.0350, 1.0220
Resistance: 1.0479, 1.0500, 1.0562, 1.0580
GBP/USD
GBP/USD breach 1.2333 and moving lower, it follows the triangle pattern and possible to bounce and test 1.2333 before moving down further. The price has been in downtrend continuation since it failed a test of 1.2500, without any change in the fundamental and technical, the pair should reach 1.2000 soon.
Today critical level to watch:
Support: 1.2270, 1.2000
Resistance: 1.2300, 1.2333, 1.2375, 1.2400, 1.2500
USD/JPY
Japan market is on holiday and the price of USD/JPY move slowly inside triangle range. We do not expect any movement soon in USD/JPY.
Today critical level to watch:
Support: 116.80, 116.00, 115.90, 115.00, 114.20
Resistance: 108.00, 118.80, 120.00, 121.48, 121.68.
AUD/USD
AUD/USD consolidate near 0.7200 support level, similar to USD/JPY we do not think the price will make significant movement today. Next scenario needs to wait for a candlestick pattern formation at 0.7200.
Today critical level to watch:
Support: 0.7195
Resistance: 0.7239, 0.7300, 0.7370, 0.7400