USDX (USD Index)
The index continues its downward movement and touches 95.00 support today. There is a bullish reaction from the level as expected and bring the index up near 95.60 resistance. We might see the index ranging between 95.00 – 95.60 for a while. In the medium-term, it is possible for the index to continue moving down and reach daily SMA 200.
News to watch
12.45 PM Fed Chair Powell Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 7-11 January 2019
Technical Analysis
EUR/USD
EUR/USD breakout yesterday losing momentum today and started downward correction toward 1.1500. Traders could prepare for a long position near the level. A stop below the trendline could be used by traders when taking long positions.
Today critical level to watch:
Support: 1.1500, 1.1400, 1.1360
Resistance: 1.1580
GBP/USD
Nothing change yet in GBP/USD traction, the pair capped below 1.2800 and might continue stuck near it. However, there is Jerome Powell speech today which might provide some volatile movement.
Today Critical level to watch:
Support: 1.2625, 1.2500
Resistance: 1.2800
USD/JPY
USD/JPY drifted further lower in today trading session. However, the pair recovered all of its losses in the U.S session. The Fed Jerome Powell is scheduled to give a speech later. Will USD/JPY maintain the level above its opening level? Alternatively, will it resume the bearish movement?
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00
AUD/USD
No decisive movement yet in AUD/USD, the key level0.7160 still intact and the pair stick near it. We favor the bullish scenario, but the pair still could go either way at the current state.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300