USDX (USD Index)

The U.S dollar index fell below 96.70 but managed to secure back the level immediately. The index currently supported by the level and might start moving higher. The global market cautiously observes the development of tension between the U.S and Iran.

Yesterday, Iran announced the abandonment of the nuclear limit and ready to retaliate against the U.S. If the index moves higher then SMA 200 and the trendline will become an upward target.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 January 2020

EUR/USD

EUR/USD climbed above daily SMA 200 and maintained the position above it. The pair experienced sell-off before the end of the previous week and this week it might test the daily SMA 200. If the pair could maintain the position above daily SMA 200 then we could expect a bounce will happen.

today critical levels to watch:

Support: 1.1120, 1.1000, 1.0900

Resistance: 1.1185

GBP/USD

GBP/USD moving upward from the 1.3000 support level and reach 1.3250 resistance. The pair experienced profit taking near the resistance and currently traded inside 1.3050 – 1.3125 range. Where will the pair move next? We still favor the bullish scenario toward 1.3500.

Today Critical level to watch:

Support: 1.3000, 1.2800, 1.2625

Resistance: 1.3050, 1.3125, 1.3250

USD/JPY

USD/JPY slide below the daily SMA 200 and distanced itself from the averages. There is little hope the pair could turn bullish and return above the averages. Traders will monitor the pair movement near the support 107.40 for now.

Today critical levels to watch:

Support: 107.40, 107.00

Resistance: 109.00, 109.70, 110.00

AUD/USD

AUD/USD return above daily SMA 200 and extend its upward movement toward 0.7000. We have a rejection from the resistance level and the pair currently might test the daily SMA 200. If the pair could maintain the position above SMA 200 then traders could enter long positions.

Today critical levels to watch:

Support: 0.6900, 0.6820, 0.6800

Resistance: 0.7000