USDX (USD Index)
The index on the path downward after hard to parse comment from the Fed Jerome Powell. Economy indicators have been great for the U.S but it seems The Fed chief saw possible headwind in the future. The market thought it is a neutral stance and might be leaning to the dovish side.
U.S dollar index currently traded at 96.10 support level and the support trendline. It is the expected level for the index to bounce. If a breakdown happens then the index will continue lower toward 95.00 – 95.50.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 19 – 23 November 2018
Technical Analysis
EUR/USD
EUR/USD comfortably riding the bullish wave upside and targeting 1.1500 – 1.1580 area. There is a bearish trendline which might become an obstacle. However, under current bullish momentum, it is better to avoid short position until a strong bearish close happen.
Today critical level to watch:
Support: 1.1360, 1.1300, 1.1200, 1.1120
Resistance: 1.1500, 1.1580
GBP/USD
Brexit news is the controlling factor of GBP/USD at the moment. The pair slightly lower as agreement over UK-EU Brexit deal might not reach. GBP/USD hovering near 1.2800 and might trade up and down between 1.2800 – 1.3000 depend on the news. Currently, the higher odds is a “no deal” which could lead the pair further downside when result reached.
Today Critical level to watch:
Support: 1.2800, 1.2625
Resistance: 1.3000, 1.3050, 1.3125
USD/JPY
USD/JPY under pressure for the second day following the latest guidance by Jerome Powell. The pair sold by the bear and currently testing 112.50 and the trendline. It is the best location to look for a long position if the bull could print a bullish candlestick pattern. The overall trend is sideways inside the triangle pattern, traders could use the pattern to take positions.
Today critical level to watch:
Support: 112.50, 112.00
Resistance: 113.00, 113.20, 114.50, 115.00
AUD/USD
The arrival of AUD/USD at 0.7330 completed our second upside target and bring the pair into a neutral state. It could either move up or move down sharply from the current level. We think AUD/USD will trade between 0.7300 – 0.7330 until strong breakout happen. If the pair continues moving upside then daily SMA 200 is the target.
Today critical level to watch:
Support: 0.7300, 0.7160, 0.7100
Resistance: 0.7330