USDX (USD Index)
The index continues showing no reaction near the 97.50 resistance. It seems the market decide to proceed cautiously ahead U.S-China phase one trade deal. At the current time, traders will continue waiting for further reaction in the index. As long as there is no higher high printed on the daily chart then the U.S dollar index expected to continue its bearish trend.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 13 – 17 January 2020
EUR/USD
EUR/USD consolidated near the daily SMA 200 and no conclusion yet on the next direction. The pair show bearish reaction yesterday but it manages to move up and closed inside Monday range. Traders will continue waiting for a further reaction from the daily SMA 200 now.
today critical levels to watch:
Support: 1.1000, 1.0900
Resistance: 1.1120, 1.1185
GBP/USD
Weak U.S data put the U.S dollar on the backfoot. But, this week the market expects BOE to cut interest-rate. The expectation brought GBP/USD lower to test 1.3000. No major breakout below the support level yet and there is bullish attempt today.
GBP/USD next direction might need to wait for the BOE interest-rate announcement.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625
Resistance: 1.3050, 1.3125, 1.3250
USD/JPY
USD/JPY has reached the resistance 110.00 and closed near it. No rejection or breakout confirmation yet for now. Traders will continue to observe the pair movement near 110.00. We think a breakout is possible but it is safer to wait for breakout and pullback before placing long positions.
Today critical levels to watch:
Support: 109.70, 109.00, 107.40, 107.00
Resistance: 110.00
AUD/USD
AUD/USD crossed above SMA 200 and secure a close above it. No follow-through by the bull yet and the pair stick near the averages now. We think the trend has turned bullish, however, the pair still need further bullish bounce confirmation above the averages.
If the pair closed below SMA 200 with strong bearish momentum then it is better to avoid long positions.
Today critical levels to watch:
Support: 0.6820, 0.6800
Resistance: 0.6900, 0.7000