Forex Technical Major Pairs analysis December 7, 2017

USDX (USD Index)

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The upward movement of U.S dollar index manages to close above Tuesday high and open more ways upward. The index currently testing previous day high and looks will breakout higher. However, traders still waiting for job data released¶ on Friday which suggests a cautious trading approach. On the other hand, major global political happen after President Trump recognizes Jerusalem as the capital of Israel.

The event might develop out of hand and result in wild movement in U.S dollar index. Traders might want to anticipate by scaling out.

News to watch

08.30 AM U.S Unemployment Claims expectation 239k

11.00 AM ECB President Draghi Speaks

For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 Dec 2017

Technical Analysis

EUR/USD

EUR/USD moved out of range after it breakout lower. The pair expected to continue its weakness toward 1.1710 and traded between 1.1710 – 1.1820 until Non-farm employment data tomorrow. Traders might want to stay sideways for now.

Today critical level to watch:

Support: 1.1710, 1.1650

Resistance: 1.1820, 1.1850, 1.1925, 1.2000

GBP/USD

The bear made another lower close on GBP/USD daily chart. The bearish movement regarded as correction could extend toward 1.3300 – 1.3330 area before it could turn back. Traders will watch price reaction in this area and look for a long position on bounce confirmation.

Today critical level to watch:

Support: 1.3342, 1.3300, 1.3250

Resistance: 1.3400, 1.3450, 1.3500, 1.3600

USD/JPY

The bear brought USD/JPY back lower below 112.50 in the previous trading session. Overall, USD/JPY continue looking for direction and might trade between 112.00 – 122.50. Traders might want to be careful as the pair could break either way. We favor short position from the fundamental side, and from the technical side, the pair only needs one more lower low to confirm the bearish trend.

Today critical level to watch:

Support: 112.00, 111.60, 111.00

Resistance: 112.50, 113.20, 114.50

AUD/USD

Rejection from top of the range at 0.7640 brings AUD/USD down to test the bottom of the range. Currently, the pair break below the bottom range 0.7550. It might continue lower and trade between 0.7500 – 0.7550. Traders might want to hold from placing long position until the bearish momentum receded.

Today critical level to watch:

Support: 0.7500

Resistance: 0.7550, 0.7630, 0.7690

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