USDX (USD Index)
Traders might be feeling anxious in U.S dollar index as the index fell from 97.50 resistance. It is not out of expectation as the event fueled by The Fed Jerome Powell speech which is less certain on rate-hike. The index might experience further weakness but we must take in our mind, rate-hike possibility still high.
Technically, the index finds support at the trendline today and currently moving upside. No change to the index forecast which is upside and inside the triangle pattern. The odds are better for bullish scenario rather than bearish.
News to watch
02.00 PM FOMC Meeting Minutes
For full outlook for this week, you can follow Forex Outlook For The Week 26 – 30 November 2018
Technical Analysis
EUR/USD
EUR/USD printed a bullish engulfing pattern and closed above 1.1360. It is a strong bullish indication and the bull followed through by moving the pair above the candlestick high. However, there is selling done by the bear today which put the pair back below the opening level. If EUR/USD could close above the bullish engulfing pattern then there is hope for the pair to continue moving higher.
Today critical level to watch:
Support: 1.1300, 1.1200, 1.1120
Resistance: 1.1360, 1.1500, 1.1580
GBP/USD
GBP/USD could not surpass 1.2800 and under trouble right now. The pair could continue its weakness toward 1.2625 as we predicted before. Today, there is FOMC meeting minutes which might have influence in the pair. However, the market focus will continue directed toward the Brexit development. Technically, the pair will continue to weaken but fundamentally sudden bullish movement possible.
Today Critical level to watch:
Support: 1.2625
Resistance: 1.2800, 1.3000, 1.3050, 1.3125
USD/JPY
The overall trend of USD/JPY is sideways inside the triangle pattern on the chart. There is no change in the projection and we think the pair will head to the bottom of the triangle now. 113.20 is the level to watch to the downside, it is possible the pair bounce from the level and disregarding the bottom of the triangle.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
A sudden bullish bounce happened in AUD/USD and brought the pair to resistance 0.7300 – 0.7330 as we expected. The pair has strong upward momentum but the resistance might be a tough resistance to break. If AUD/USD could close above 0.7330 then we might see further continuation toward daily SMA 200 and switch to a bullish trend.
Today critical level to watch:
Support: 0.7300, 0.7200, 0.7160
Resistance: 0.7330