USDX (USD Index)
The index unexpectedly turns bearish despite the monstrous bullish candlestick printed on the daily chart. If the bear continues in control until the end of the trading day then the index might challenge 96.10 support again. Meanwhile, the outlook will turn sideways between 96.10 – 96.70.
No major news which could move the market today. Traders will focus on the progress of U.S-China trade deals.
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
No breakout below 1.1300 after previous day bearish momentum candlestick. EUR/USD attempting recovery today and manage to erase around 70% of previous day losses. However, the pair still traded below 1.1360. If the pair could climb and close above 1.1360 then it will become major upset for the bull. Next week we could expect a more bullish reaction from the market if we have a close above 1.1360.
Today critical level to watch:
Support: 1.1300
Resistance: 1.1360, 1.1400, 1.1500, 1.1580
GBP/USD
The bull is not letting go the domination in GBP/USD even though the daily SMA 200 reached. In the previous day, the pair closed near its opening level even though most major currencies retreat against U.S dollar. If the bull could maintain the bullish trend then we could expect further rally toward 1.3250.
Today Critical level to watch:
Support: 1.3000, 1.2800, 1.2625, 1.2500
Resistance: 1.3250
USD/JPY
USD/JPY drifted higher today in a slow manner. Overall, the pair continues to make upside pressure but could not surpass 110.00 barriers yet. No positions suggested yet as we are at the middle of 109.00 – 110.50 area.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.50, 111.00
AUD/USD
A bearish engulfing pattern formed on AUD/USD daily chart after rejection from 0.7160 resistance level. The bear should have an advantage after the pattern however the downward momentum recedes and currently AUD/USD on the positive side. No clue yet, traders who are looking for long positions could take the positions near red trendline. Traders who are looking for a short position could observe 0.7160.
Today critical level to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300