USDX (USD Index)
U.S dollar index reversed at the beginning of the week and launched from 96.70 support level to reach 97.50 resistance. Delay in the Brexit deal vote and China Huawei CFO detainment is the force behind the index upward movement. The upward movement has strong momentum and could break the resistance.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 December 2018
Technical Analysis
EUR/USD
EUR/USD rejected from the trendline resistance and the downward movement gain momentum. Currently, the pair has reached the 1.1300 support level and testing it. Will we see a breakout lower or another bounce from the support level?
Today critical level to watch:
Support: 1.1300, 1.1200, 1.1120
Resistance: 1.1360, 1.1500, 1.1580
GBP/USD
Delay in Brexit deal vote might be the sign of “No deal” and means hard Brexit is on the card. GBP/USD reacted negatively to the event and tumbled below 1.2625. It is traded near 1.2500 which is a major psychological level but we think the bear still has more to go as Brexit issue develop negatively.
Today Critical level to watch:
Support: 1.2500
Resistance: 1.2625
USD/JPY
USD/JPY continue inside the triangle pattern on its daily chart and closed above 113.20. The pair currently headed higher and ready to test the top of the triangle. As long as there is no breakout outside of the triangle, the pair expected to continue its ranging movement.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
AUD/USD traded defensive near the red trendline and 0.7160 support level. The strength of U.S dollar index put all major currencies across the world under pressure this week. We might see the pair reach 0.7160 soon. Will it bounce and maintain the range between 0.7160 – 0.7330?
Today critical level to watch:
Support: 0.7200, 0.7160
Resistance: 0.7300, 0.7330, 0.7400