USDX (USD Index)
No change to the outlook of the U.S dollar index yet which trade near the support 96.70. The index expected to continue its consolidation near the support level. Traders will continue to observe the market reaction near the support level. Yesterday, Iran launched missiles attacks on the U.S base in Iraq. Fear clouded the market and we expect the flight to safe-haven assets will continue at the current time.
News to watch
09.15 PM U.S ADP Non-Farm Employment Change, forecast 160k
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 January 2020
EUR/USD
EUR/USD maintained its position above the daily SMA 200 and the trendline. As long as the pair could maintain closes above the support levels then traders could expect a bounce will happen. Long position near the SMA 200 and the trendline could be considered by traders.
today critical levels to watch:
Support: 1.1120, 1.1000, 1.0900
Resistance: 1.1185
GBP/USD
The consolidation expected to continue in the GBP/USD daily chart. The pair currently traded inside 1.3000 – 1.3250 range. We think GBP/USD has more chances to turn bullish in the future. Traders could consider taking long positions when the pair test 1.3000 and 1.3050.
Today Critical level to watch:
Support: 1.3050, 1.3000, 1.2800, 1.2625
Resistance: 1.3125, 1.3250
USD/JPY
USD/JPY dropped sharply today following the retaliation against the U.S by Iran. The pair looks will reach 107.40 support level initially. However, the bearish pressure loses momentum and the pair could recover all of its losses today. At the current time, the pair might continue upward and test the daily SMA 200. Traders will monitor the market reaction at SMA 200.
Today critical levels to watch:
Support: 107.40, 107.00
Resistance: 109.00, 109.70, 110.00
AUD/USD
The bull could not stop the bearish pressure and AUD/USD closed below SMA 200 yesterday. AUD/USD might continue its downward movement in the coming days if the bull could not close the price above SMA 200. Traders could look for short positions near the SMA 200 when the pair form a bearish pattern.
Today critical levels to watch:
Support: 0.6820, 0.6800
Resistance: 0.6900, 0.7000