USDX (USD Index)
The bull drives the U.S dollar index further upside today and targeting the 97.50 resistance. There is nothing out of expectation yet and we expect the upside movement will continue. However, a sharp reversal from current level might trigger selling and another retest on the trendline.
Holding a long position in U.S dollar is the best option but adding more position might not be a good idea.
News to watch
10.00 AM U.S CB Consumer Confidence, forecast reading of 136.2
For full outlook for this week, you can follow Forex Outlook For The Week 26 – 30 November 2018
Technical Analysis
EUR/USD
EUR/USD slightly lower and currently testing 1.1300 support level. The bull has emerged and held the pair from further downside. However, the day has not closed yet and it is possible the bear could gather more bearish momentum to break the support level. On the other hand, a bounce from 1.1300 might create an inverted shoulder-head-shoulder pattern which is a bullish pattern.
Today critical level to watch:
Support: 1.1300, 1.1200, 1.1120
Resistance: 1.1360, 1.1500, 1.1580
GBP/USD
GBP/USD pushed lower below 1.2800 and risk further downside toward 1.2625 support level. Shorting at current level might prove to be risky as the UK undergo vote on the Brexit deal. It is better to stay sideline or traders who do not miss the movement could hold a small position in the pair.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.2800, 1.3000, 1.3050, 1.3125
USD/JPY
No much movement yet in USD/JPY, the pair expected to reach the top of the triangle shown on the daily chart. It is also expected to continue ranging movement inside the triangle until breakout happens. At the current time, traders could trade the range.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
The pair stages another rally attempt from the red trendline but losing momentum half-day. Currently, it is traded near its opening level and maintain small gains for the day. Traders could expect more movement when the market enters the U.S session. We still think AUD/USD will move upside.
Today critical level to watch:
Support: 0.7200, 0.7160, 0.7100
Resistance: 0.7300, 0.7330