USDX (USD Index)
The reaction happens at 97.50 resistance in the U.S dollar index daily chart. It is the third time selling happen which is before December The Fed interest-rate decision next week. Currently, the index expected to continue its downward movement and test 96.70. We might not see a breakout of 96.70 – 97.50 range until next week FOMC meeting.
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
The pair bounced from 1.1300 and crossed 1.1360 today. We could find a triangle pattern on the chart and it could break either way base on next week FOMC. The odds better tilted to the bullish side as the market think the Fed will not increase interest-rate more than one time next year. On the other hand, U.S-China trade talk is under progress and might develop positively.
Today critical level to watch:
Support: 1.1360, 1.1300, 1.1200, 1.1120
Resistance: 1.1500, 1.1580
GBP/USD
Sharp bounce from trendline happened in GBP/USD. The pair reclaimed 1.2625 and ready to test the flip level on the chart. Under current bullish correction, there is a high chance breakout higher happen. But, the overall situation is bearish which suggest traders to wait until the flip level broken.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800
USD/JPY
USD/JPY climbed above 113.20 and maintain the level above it. There is nothing change yet as the pair still trades inside the triangle. Currently, we still expect the pair to test the top of triangle. Traders could use 113.20 as a reference to taking a long position.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
AUD/USD bounced from red trendline and showing a sign to breakout higher. The pair currently moves above previous day high. If we have a close above the high then AUD/USD expected to continue its upward movement and possibly test 0.7300 – 0.7330 area again. Traders could use previous day high as a level to take a long position when today closing level above it.
Today critical level to watch:
Support: 0.7200, 0.7160
Resistance: 0.7300, 0.7330, 0.7400