USDX (USD Index)
A breakout below SMA 200 happened and the index continues lower. We could see the index found support near the bottom of the channel. If the index could bounce from the channel and close above SMA 200 then traders could expect further upside in the index.
The long-term trend of the index is bullish which suggests traders be careful when entering short positions in the U.S dollar.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 December 2019
EUR/USD
The overall trend of EUR/USD is bullish for the short-term and the pair currently challenging daily SMA 200. There is one major bearish pin bar pattern formed but no breakout confirmation yet. We will expect the pair to continue its consolidation near the averages and waiting for a reaction for now.
today critical levels to watch:
Support: 1.1120, 1.1000, 1.0900
Resistance: 1.1185
GBP/USD
GBP/USD reached 1.3450 and as high a 1.3500 in the previous bullish attempt as expected. After the target reached, GBP/USD started its bearish correction and almost reach 1.3000 support level. Traders could prepare to enter long positions when the bearish momentum recede and the bullish pattern formed near 1.3000 – 1.3125
Today Critical level to watch:
Support: 1.3125, 1.3000, 1.2800, 1.2625
Resistance: 1.3250
USD/JPY
USD/JPY jumped from below SMA 200 and closed above it. The pair continues its upward movement and made another test on 109.70 resistance level. We expect the pair will complete its upward movement and reach 110.00 resistance. Traders could continue to hold long positions for now and waiting for the pair reaction near the resistance.
Today critical levels to watch:
Support: 109.00, 107.40, 107.00
Resistance: 110.00
AUD/USD
AUD/USD breakout above the green box area and proceed higher to test the SMA 200. We have a bearish reaction from the averages and the pair currently rejected from it. If the bearish momentum continues to add-up then we could expect the pair to test 0.6820 and breakout below it.
However, if the pair could maintain the position above 0.6820 and form major bullish pattern then traders could enter long positions.
Today critical levels to watch:
Support: 0.6820, 0.6800, 0.6750, 0.6700
Resistance: 0.6900