USDX (USD Index)

The movement of the U.S dollar index turned bearish at the beginning of the day. However, the weakness does not last and currently, the index traded near its opening level. It seems the index will consolidate between 97.50 and the daily SMA 200. Will the index make a bullish breakout and continue its uptrend? Alternatively, will it get rejected near SMA 200 and close below 97.50 to continue its short-term bearish trend?

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 20 – 24 January 2020

EUR/USD

EUR/USD started the day on a bullish note. However, the upward movement losing momentum and EUR/USD currently traded near its opening level. It seems the bear has upper-hand and could push the pair further lower in the coming days.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

GBP/USD bounces from 1.3000 support level today despite the expectation that BOE will cut interest-rate. We think the pair might maintain the position near 1.3000 for now until the announcement of interest-rate.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY slightly lower today but maintain the level near 110.00. It is normal for the pair to start a correction below 110.00 toward 109.70 or the trendline. When the pair reach both support levels, traders could consider entering long positions.

Today critical levels to watch:

Support: 110.00, 109.70, 109.00

Resistance: 110.50, 111.00

AUD/USD

The direction of AUD/USD might have been settled after the close below SMA 200. The pair continue losing ground and printed a new lower low this month. Without any major change to the situation, AUD/USD expected to continue lower and test 0.6820.

Today critical levels to watch:

Support: 0.6820, 0.6800

Resistance: 0.6900, 0.7000