USDX (USD Index)

U.S dollar index tested 97.50 resistance yesterday and maintain the position near it. The index show limited bearish reaction today in response to President Trump impeachment by the house of representative. The impeachment process will enter into the trial at Senate next month.

We think the U.S dollar index might continue upward and a breakout above daily SMA 200 to continue its uptrend.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 December 2019

EUR/USD

EUR/USD consolidates between 1.1120 and the daily SMA 200 at the current time. Traders will wait until the pair make a breakout to determine its next direction.

today critical levels to watch:

Support: 1.1120, 1.1000, 1.0900

Resistance: 1.1185

GBP/USD

GBP/USD weakens further but with less bearish momentum. The pair expected to test the level around 1.3000 – 1.3050 and bounce from it. At the current time, traders could start to look for long positions near the area after the pair bearish momentum recede.

Today Critical level to watch:

Support: 1.3050, 1.3000, 1.2800, 1.2625

Resistance: 1.3125, 1.3250

USD/JPY

USD/JPY stuck near 109.70 and looking for a breakout above the level. At the current time, there is no major bearish reaction from the resistance level. Traders will continue to hold long positions while monitoring the market reaction at the resistance.

Today critical levels to watch:

Support: 109.00, 107.40, 107.00

Resistance: 109.70, 110.00

AUD/USD

AUD/USD slope upward after the bearish correction and might move upward to test the daily SMA 200. No clue on the long-term direction and traders might want to stay sideline for now.

Today critical levels to watch:

Support: 0.6820, 0.6800, 0.6750, 0.6700

Resistance: 0.6900