USDX (USD Index)
A bullish attempt made in the U.S dollar index today. The bullish movement received resistance near 96.10 broken support. There is no conclusion on the next direction yet, but we expect the index to continue its downward movement toward 95.50 support level.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 7-11 January 2019
Technical Analysis
EUR/USD
EUR/USD lower when the pair hit a level near 1.1500. It is a common reaction as profit-taking hit the market. However, the previous day candlestick weight more and the bearish correction might stop soon. We expect a test on 1.1500 happens this week.
The expected overall trend of EUR/USD is ranging inside the triangle until breakout happens. Buying near 1.1500 might not be a good option to take. Long position near the bottom of the triangle is a better choice.
Today critical level to watch:
Support: 1.1400, 1.1360, 1.1300
Resistance: 1.1500, 1.1580
GBP/USD
No change to the outlook of GBP/USD yet which is inside 1.2625 – 1.2800. The pair is testing the top of the range and showing no reaction yet. If the bull could close the pair above 1.2800 then it is possible the pair will start a new bullish move toward the daily SMA 200.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800
USD/JPY
USD/JPY correction has reached 109.00 today and will wait for next direction. We think the bear still has upper hand and resume the bearish trend in USD/JPY from the current level. Otherwise, the pair might extend the upside toward the red trendline before restart the downward movement.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00
AUD/USD
AUD/USD drifted lower below 0.7160 but no momentum movement yet. The pair might stall near the resistance level and waiting for a trigger to next movement. We maintain the bullish view toward 0.7300 – 0.7330 or the daily SMA 200.
Today critical level to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300