USDX (USD Index)
96.70 is the level which is important for U.S dollar index to maintain. Today, the index make attempt to move lower but the bearish pressure might not able to create a close below the support level. Overall, the bullish engulfing pattern printed in the previous day still intact and not confirmed yet.
Tomorrow, the bull needs to make a breakthrough above the bullish engulfing pattern to confirm the pattern.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 12 – 16 November 2018
Technical Analysis
EUR/USD
A triangle pattern might be established in EUR/USD. The pair printed a bearish engulfing pattern with bottom near support 1.13600. There is no breakout confirmation yet and the pair might be traded inside the triangle. Although it is neutral, we think the medium-term trend is bearish and EUR/USD could continue lower when break and close below 1.1300 happen.
Today critical level to watch:
Support: 1.1360, 1.1300, 1.1200, 1.1120
Resistance: 1.1500, 1.1580
GBP/USD
GBP/USD stay under pressure below 1.2800 and heavily influenced by Brexit situation. At the current time, the pair could move with a lot of volatility either upside or downside. Traders might want to stay sideline or trade with short-term outlook while waiting for the finalization of Brexit scenario.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.2800, 1.3000, 1.3050, 1.3125
USD/JPY
USD/JPY bounced from the bottom of the triangle and the support 112.50. The upward movement of the pair reached 113.20 resistance and paused near it. The pair could either consolidate between 112.50 – 113.20 or moving higher to trade inside the triangle pattern. Traders could continue adding long position and target the top of the triangle. On the other hand, a breakout below 112.50 might become the bearish trigger.
Today critical level to watch:
Support: 113.00, 112.50, 112.00
Resistance: 113.20, 114.50, 115.00
AUD/USD
AUD/USD found support at the red trendline today and the bull currently holding control of the pair. There is chance AUD/USD will retest 0.7300 – 0.7330 again in few days or weeks. If the resistance area is broken then traders could expect the pair continue its upward movement toward the daily SMA 200.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7040, 0.7000
Resistance: 0.7300, 0.7330