USDX (USD Index)
U.S dollar index starts the week with the opening gap up which filled in the Asian session. The index might continue upside after Friday candlestick closed above 92.00. The index expected to trade between 92.00 – 93.00 and inside the bullish channel. Although the price direction is up, overall the high gets lower each day.
If the index breaks lower below the bullish channel and moves below 91.00, it will trigger the continuation of the bearish trend.
News to watch
09.00 AM ECB President Draghi Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 Sep 2017
Technical Analysis
EUR/USD
EUR/USD movement is getting tighter and expected to move in limited space between the black colored line. Traders might want to trade the sideways movement while waiting for a breakout. U.S dollar index is at a crucial moment, and a bullish reversal in the index might lead EUR/USD down.
Today critical level to watch:
Support: 1.1900, 1.1820, 1.1710
Resistance: 1.1925, 1.2000, 1.2070
GBP/USD
GBP/USD is in an uptrend, but the pair limited between 1.3450 – 1.3610. No breakout is seen yet, and it is expected to continue the sideways movement. BOE governor Carney speech on Thursday and Friday might give light where GBP/USD will move to.
Today critical level to watch:
Support: 1.3500, 1.3450, 1.3400, 1.3300
Resistance: 1.3600, 1.3700, 1.3835, 1.4000
USD/JPY
USD/JPY is bullish above the daily SMA 200, but the pair stays below 112.50 resistance level. The pair might move between 112.50 and the daily SMA 200 today while waiting for Yellen speech on Tuesday.
Today critical level to watch:
Support: 112.00, 111.60, 111.00, 110.50, 109.00, 108.80
Resistance: 112.50
AUD/USD
The bear is an advantage as AUD/USD closed below the trendline and also 0.8000. However, there is no follow through yet, and there is the risk the pair will close above 0.8000. If AUD/USD could close above 0.8000, it might turn moderately bullish and cancel the bearish break.
On the other hand, if the bear could gather momentum, it might push the pair toward 0.7875
Today critical level to watch:
Support: 0.7900, 0.7875
Resistance: 0.7970, 0.8000, 0.8100