USDX (USD Index)
U.S dollar index launched upward after the test on 96.10 support level. The situation is extremely bullish as the index will reach 96.70 in one day. We think the upward has more merit and will break above 96.70 at the end of the week or next week.
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 bear to move the pair down with strong momentum. It is a major movement and might result in a double breakout. The pair has not closed yet and it is currently testing 1.1300 support level. If the bull give way and EUR/USD closed below 1.1300 then we expect the bearish trend will resume.
Today critical level to watch:
Support: 1.1300
Resistance: 1.1360, 1.1400, 1.1500, 1.1580
GBP/USD
GBP/USD finally reach 1.3000 and the daily SMA 200 more than our expectation. The pair closed above 1.3000 and opening the bullish scenario. However, the bull still needs to finish the week above daily SMA 200 to confirm the bullish outlook. Traders will monitor the pair movement on Friday to determine if GBP/USD could continue upward.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625, 1.2500
Resistance: Daily SMA 200
USD/JPY
The pair bounced from the red trendline and confirm the bullish attempt. However, today trading session proves that the market still unconvinced on the bullish scenario. Today trading range is smaller compared to the previous day and suggests USD/JPY waiting for another momentum movement.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
AUD/USD is in trouble today after the pair rejected from 0.7160 resistance. The selling has momentum and might close the day as a bearish engulfing pattern. If the pair confirmed later on Friday trading session then we could expect further weakness to test 0.7000 and eventually previous month low.
Today critical level to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300