USDX (USD Index)
U.S dollar index closed near the daily SMA 200 and show more bearish pressure. The index continues lower today and testing 97.50 support level. Although bearish, it is better to wait until the close of the day to determine if a breakout has happened or not.
If the index could recover and close above SMA 200 then it is the indication to enter long positions in the U.S dollar.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 02 – 06 December 2019
EUR/USD
The pair reached a level near 1.1120 resistance before turned lower yesterday. It completes the upward target of our projection. Traders will wait for further reactions to determine the pair’s next direction. Will the pair continue upward and a breakout above 1.1120 and the daily SMA 200?
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
The bull set loose in the pair and continue further upward above 1.3000. It also reaches 1.3125 today and might extend the upward movement toward 1.3250. Wait until the pair make the bearish correction before entering long positions. Short positions could be considered when the pair reach 1.3250 and form a major bearish pattern.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3125, 1.3250
USD/JPY
The bull appeared and brought USD/JPY up to close near the daily SMA 200. It was a convincing bullish close but with no follow-through today. The pair might stick near the averages for now while waiting for a trigger. Traders will observe the pair reaction. We think the pair could continue upward and test 110.00.
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 109.00, 110.00
AUD/USD
AUD/USD closed near its opening level yesterday after a bearish correction. We have a confirmed bounce from 0.6820 but the bull has not appeared yet today. AUD/USD currently lower and might retest 0.6820 again. Traders will prepare for long positions with a tight stop below the level.
On the upside, daily SMA 200 will become the level to look for short positions.
Today critical levels to watch:
Support: 0.6820, 0.6800, 0.6750, 0.6700
Resistance: 0.6900