USDX (USD Index)
96.10 challenged in the previous day and holding out against the bullish pressure. U.S dollar index currently hovering near the resistance level, waiting for momentum to break through the resistance. Traders will continue to hold long position and wait for the further reaction from the resistance 96.10.
Today, UK vote resulted in the rejection of Theresa May Brexit deal. It is not a good situation for the global market and might trigger some reaction soon. Later after the vote, there will be confidence vote on the PM’s rule.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 14-18 January 2019
Technical Analysis
EUR/USD
Which one will happen? A break or a bounce from the bottom of the triangle on EUR/USD. Observing the pattern, we think a bounce has higher odds as EUR/USD latest leg is a bullish leg. However, the inability to break above 1.1500 might become the major reason the pair sold by traders.
Today critical level to watch:
Support: 1.1400, 1.1360
Resistance: 1.1500, 1.1580
GBP/USD
GBP/USD swing wildly after the Brexit deal voted down. The pair dropped sharply below 1.2800 but recovered to its opening level at the end of the day. It could mean a false bearish breakout and lead to a new bullish trend. GBP/USD might continue to move wildly as a confidence vote on Theresa May under progress.
Today Critical level to watch:
Support: 1.2800, 1.2625, 1.2500
Resistance: 1.3000
USD/JPY
No change in USD/JPY outlook, the pair stay inside 107.40 – 109.00 area and look will test the top of range soon. Traders could place a short position when the test resulted in a strong bearish reaction.
Today critical level to watch:
Support: 107.40, 105.00
Resistance: 109.00
AUD/USD
0.7160 is an appealing level to watch for the bull. If the bull could maintain the position above 0.7160 by the end of the week then we could expect a rally in AUD/USD. However, a breakout lower might trigger new bearish leg to move below 0.7000.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300