USDX (USD Index)

A breakout below SMA 200 happened in the previous week. But, at the end of week U.S dollar index stage upward movement and manage to move past the SMA 200. However, the index closed near the SMA 200 by the end of the week. This week, the index will test the SMA 200 and looking for further upward movement.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 09 – 13 December 2019

EUR/USD

EUR/USD dropped suddenly at the end of the week and closed below four days candlestick low. The pair might continue lower this week continuing the bearish pressure happens in the Friday trading session. If the bearish movement continues we could expect EUR/USD to test 1.1000.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

GBP/USD breakout above 1.3000 and continue upward to close above 1.3125. The pair bullish pressure continues building up and it seems the pair will reach 1.3250 targets. At the current time, traders could maintain long positions and add more long positions when GBP/USD retest 1.3000.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3125, 1.3250

USD/JPY

USD/JPY could not close above SMA 200 and 109.00. It is a bearish indication and the pair might test the trendline this week. No conclusion yet on the pair next direction. Traders will wait for a further clue on the pair reaction toward trendline and SMA 200 this week.

Today critical levels to watch:

Support: 107.40, 107.00

Resistance: 109.00, 110.00

AUD/USD

AUD/USD formed a consolidation range above 0.6820. The pair expected to continue moving inside the green box area this week while maintaining the target at SMA 200. Long positions with a tight stop below 0.6820 might become the option, traders could take.

We still expect the pair to continue its long-term bearish trend and it might happen after a test on SMA 200.

Today critical levels to watch:

Support: 0.6820, 0.6800, 0.6750, 0.6700

Resistance: 0.6900