USDX (USD Index)

The index closed near 97.50 resistance and continue its consolidation for now. We think no breakout above 97.50 and the daily SMA 200 will happen this week or at the end of the year. At the current time, traders will continue to monitor the index reaction near the resistance 97.50.

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 attempts to move higher yesterday, but the pair rejected from the daily SMA 200. At the current time, EUR/USD traded near 1.1120 and might stick near it by the end of this week.

today critical levels to watch:

Support: 1.1120, 1.1000, 1.0900

Resistance: 1.1185

GBP/USD

GBP/USD managed to reach 1.3000 with strong bearish momentum. It is a flip level where the pair could find support. At the current time, the pair show a bullish reaction. If the pair could close the day on the positive side and with major bullish pattern then GBP/USD will start a new bullish leg.

It is too early to enter long positions but traders who attempt long positions could limit the stop below 1.3000.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY reacted bearishly at the resistance 109.70 and formed a bearish engulfing pattern. It is not a strong pattern and as long as there is no further bearish close, USD/JPY could continue its upward movement. Traders will wait for a further reaction at the current time.

Today critical levels to watch:

Support: 109.00, 107.40, 107.00

Resistance: 109.70, 110.00

AUD/USD

The pair made a bullish close yesterday and the bull follow-through by pushing the pair upward today. We have a little bearish reaction from the daily SMA 200 and the pair slightly lower now. In the long-term, AUD/USD trend is bearish and traders could enter short positions near the current level.

Today critical levels to watch:

Support: 0.6820, 0.6800, 0.6750, 0.6700

Resistance: 0.6900