USDX (USD Index)
The bull manages to secure a close above 96.10 in the previous week which might be the game changer for the U.S dollar index. This week, the bull task is to maintain the index above 96.10. If there is no breakout and a close below 96.10 then we might see U.S dollar index resume its long-term bullish trend.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 21-25 January 2019
Technical Analysis
EUR/USD
EUR/USD supported at 1.1360 but there is no significant bullish attempt yet from the level. On the other hand, the bear keeps pressing the pair down. If the situation continues then EUR/USD might break downside and resume the prevailing bearish trend.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1400, 1.1500, 1.1580
GBP/USD
GBP/USD situation influenced heavily by Brexit sentiment. After the “May’s Brexit deal” voted down, the PM undergo confidence vote which she survived. “No deal” odds heightened but there is another chance for the PM to present another deal.
Technically, GBP/USD has reached 1.3000 targets and currently traded at the middle of 1.2800 – 1.3000. It is possible we will see one more attempt at daily SMA 200 before the next direction settled.
Today Critical level to watch:
Support: 1.2800, 1.2625, 1.2500
Resistance: 1.3000
USD/JPY
The pair passed above 109.00 and rallied by the end of previous week. There is further room upside for this bullish correction. 110.50 – 111.00 and the daily SMA 200 is the focus resistance when the pair makes it toward the resistances. Bull traders could use 109.00 as the level to take long positions.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD stalled at 0.7160 and showing no direction yet. It is better to stay sideline, for now, waiting for momentum movement in the pair. We maintain the bullish outlook in the pair and think AUD/USD will continue upward toward 0.7300 – 0.7330.
Today critical level to watch:
Support: 0.7160, 0.7000
Resistance: 0.7200, 0.7300