USDX (USD Index)
U.S dollar index resumes its pullback today, mostly caused by the government shutdown in U.S and combination of vital news regarding the future. The Fed less firm stance on the rate-hike is one of the major cause of current pullback, followed by relaxation in trade war tension.
We expect the index to continue its downward movement toward 95.00 or the SMA 200 before any bounce happen.
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
A major bullish breakout happens today in EUR/USD. The pair breaks above 1.1500 and confirmed the short-medium term bullish trend. 1.1580 is the upward target for a current breakout, followed by the daily SMA 200. Traders could use 1.1500 as the level to look for long position when pullback happens.
Today critical level to watch:
Support: 1.1500, 1.1400, 1.1360
Resistance: 1.1580
GBP/USD
Despite the breakout in other major pairs, GBP/USD upward movement capped below 1.2800. It is not good news for the bull as U.S dollar currently under the weak state. When the index recovered, we might see GBP/USD pushed lower. The Brexit situation is the major cause of no breakout in GBP/USD.
Traders might want to stay away from the pair as announcement related to Brexit could spark a sharp movement in the pair.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800
USD/JPY
The touchdown on 109.00 resulted in rejection today. USD/JPY slide downward broke below previous day low. It is the bearish continuation sign which could lead the pair down to test 107.40 again. If the U.S dollar index weakens further then USD/JPY should break the support level and test a cluster of support from 106.10 – 107.40.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00
AUD/USD
The pair advances above 0.7160 today, marking the continuation of a bullish trend. If the bull could maintain the position above 0.7160 by the end of the week, we should see further bullish movement toward 0.7300 – 0.7330 area. Traders could use the level 0.7160 to look for long positions.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300