USDX (USD Index)
The index advance higher after testing 95.50 support level today. It is expected and the index might reach 96.10 level soon. Will the bull continues to push the price further higher and resume the long-term bullish trend? Alternatively, will the bear take control when the index reaches 96.10 and push it lower below daily SMA 200?
The UK will undergo Brexit vote today which will determine how Brexit will proceed. Expect major movement in GBP pair today.
News to watch
08.30 AM U.S PPI m/m, forecast -0.1%
10.00 AM ECB President Draghi Speaks
UK Parliament Brexit Vote
For full outlook for this week, you can follow Forex Outlook For The Week 14-18 January 2019
Technical Analysis
EUR/USD
EUR/USD moving lower, distancing itself from 1.1500 resistance. The pair downward movement soon will reach the bottom of green triangle. Traders could prepare for long position when the pair hit the bottom of triangle and formed a strong bullish pattern.
Today critical level to watch:
Support: 1.1400, 1.1360
Resistance: 1.1500, 1.1580
GBP/USD
It is a major day for GBP/USD as the UK goes to vote on Brexit deal. The movement of GBP/USD will wait for the vote result. Anything could happen and it is better to hold small positions in GBP/USD.
Today Critical level to watch:
Support: 1.2800, 1.2625, 1.2500
Resistance: 1.3000
USD/JPY
USD/JPY sloping upside today on U.S dollar strength. The pair has not left the middle of 107.40 – 109.00 range. Traders will continue to wait until the pair reach either 107.40 or 109.00 before taking any positions. At the current time, the situation favor upside as U.S dollar index make recovery.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00
AUD/USD
No change to the outlook of AUD/USD yet. The pair expected to move down, test 0.7160 and bounce upward to reach 0.7300 – 0.7330. At the current time, long positions near 0.7160 are the options bull traders could take. Short options might become possible when a close below 0.7160 happen.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300