USDX (USD Index)

Monday trading session was lack of direction and end flat as expected. The absence of U.S traders brought low volatility environment which adds Monday low volume trading into a flat day. Tuesday trading session also shows lack of direction where prices stick inside Monday range. We have series of FOMC members speech today which might put volatility into the market.

Meanwhile, it is a sideway market, and traders advised to stay sideline for a while.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 Sep 2017

Technical Analysis

EUR/USD

No change to the current forecast on EUR/USD, the pair expected to continue moving inside 1.1820 – 1.1925.

Today critical level to watch:

Support: 1.1820, 1.1800, 1.1820, 1.1710

Resistance: 1.1900, 1.1924, 1.2000

GBP/USD

UK service PMI comes out at 53.2 just 0.3 points below 53.5 expectation. GBP/USD initially slide lower after the news, but immediately bouncing up. The pair expected to continue moving between daily SMA 200 – 1.3000.

Today critical level to watch:

Support: 1.2930, 1.2900, 1.2870, 1.2800, 1.2700

Resistance: 1.3000, 1.3070

USD/JPY

The test of 109.00 is highly possible as USD/JPY drifted lower today. The pair slides below previous day low but manages to recover above it. If the pair closed below previous day low, it would open the path toward 109.00, otherwise a bounce toward 110.50 also possible.

Today critical level to watch:

Support: 109.00, 108.10

Resistance: 110.00, 110.50, 110.94, 111.00

AUD/USD

The triangle pattern on AUD/USD getting near for completion. The pair stays below 0.8000 and above the trend line. Traders might want to observe how the breakout happen either side.

Today critical level to watch:

Support: 0.7900, 0.7875, 0.7834, 0.7750

Resistance: 0.7970, 0.8000