USDX (USD Index)
U.S dollar index lost grip on 93.00 support and closed the week below it. The closure below 93.00 is bearish and encourage more weakness in coming days/weeks. If the bearish momentum accelerates, we might see the index hovering near 92.00 by the end of December. Traders will observe 93.00 broken support and see if the bear could hold the index below the level.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 27 – 1 Dec 2017
Technical Analysis
EUR/USD
EUR/USD bull is on fire and charging through nearest resistance. The pair has printed higher high on the chart and canceled the bearish outlook. On the downside, the pair will have 1.8200 as the support level. On the upside, the pair will target 1.2000 – 1.2070.
Today critical level to watch:
Support: 1.1850, 1.1820, 1.1710, 1.1650
Resistance: 1.1925, 1.2000
GBP/USD
No breakout on the trendline means nothing to do yet on GBP/USD for the bull. However, the pair stuck near trendline and top of the yellow box is an opportunity for the bear. If the bear could reverse the pair, it could target 1.3250 and the red trendline. It is a sideway situation in GBP/USD pair and expected will continue this week, but it will depend on the bull ability to break the trendline.
Today critical level to watch:
Support: 1.3300, 1.3250, 1.3200, 1.3125, 1.3100
Resistance: 1.3342
USD/JPY
The trend of USD/JPY has turned bearish since the close below daily SMA 200. Today, we have a rejection from the averages retest. If the bearish momentum continues below 111.00, it will trigger more selling toward black trendline and 110.50.
Today critical level to watch:
Support: 111.00
Resistance: 111.60, 112.00, 112.50, 113.20, 114.50
AUD/USD
AUD/USD pause at the trendline continues for the third day, and there is an indication of rejection as the pair fell below Friday low. Fortunately, the bull returns and bring the price back above the low. Will the bull seize control and make a breakout higher above the trendline? As the U.S dollar index break lower, it is possible AUD/USD could break higher.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7630, 0.7690, 0.7750, 0.7800