USDX (USD Index)
The index closed at the opening level which suggests more consolidation on the card. Today, there is not much movement yet but we think the overall outlook is bullish for the U.S dollar index. If the index moves down, then 96.10 is the support level to watch.
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 closed near 1.1360 and maintain the support level. If the bull could push the pair upside today and close above previous day high then EUR/USD might start a new bullish leg. Traders could start looking for a long position with stop order below 1.1300.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1400, 1.1500, 1.1580
GBP/USD
Another bullish close happened in GBP/USD, the pair is getting closer to retest 1.3000 resistance. If the resistance is broken then we have daily SMA 200 to break. Will the pair manage to break upside? Alternatively, will it turn lower and resume the long-term bearish trend?
Today Critical level to watch:
Support: 1.2800, 1.2625, 1.2500
Resistance: 1.3000
USD/JPY
USD/JPY bearish close at the red trendline used by the bull today to incite a bounce. The bull has claimed all of the previous days lose and hovering near yesterday opening level. If the bull could close the pair above previous day high then we expect USD/JPY to move higher toward 110.50.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD is under risk of further weakness as the pair slip below 0.7160. The pair needs to climb above 0.7160, otherwise, the bear will take over and lead it a downside. We still maintain the bullish outlook and expect 0.7300 – 0.7330 will be reached in coming days or weeks.
Today critical level to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300