USDX (USD Index)
U.S dollar index managed to close above the 93.00 resistance level and brought the index trading in the higher level of 93.00 – 94.00. This week, China is absent from trading as the market is in holidays. This means overall volatility will be lower as U.S Non-farm employment data loom. We expect the index will maintain its advantage above the 93.00 support and might continue upside after the release of job data.
News to watch
Australia Bank Holiday, China bank holiday
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 Oct 2017
Technical Analysis
EUR/USD
EUR/USD broke below yellow range is bearish and put the pair near 1.1710 support level as expected. The pair expected to move between 1.1710 – 1.1820 until next direction establish. Under the current situation, we favor further downside which is parallel with U.S dollar index recovery in last quarter of 2017.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1900, 1.1925, 1.2000
GBP/USD
GBP/USD weaken since the pair reaches post-Brexit high. On the monthly chart, the pair also closed below 1.3480 even though it initially broke above it. Will the bearish momentum build up and lead GBP/USD lower into the new bearish leg?
Today critical level to watch:
Support: 1.3342, 1.3300
Resistance: 1.3400, 1.3450, 1.3500
USD/JPY
The bull has an advantage in USD/JPY as the pair made continuous challenge toward 112.50. However, the pair has not resolve next direction. The weekly close below 112.50 and just a few pips from it. This week, 112.50 will continue act as resistance, and a break above it should trigger more buying.
Today critical level to watch:
Support: 112.00, 111.60, 111.00, 110.50
Resistance: 112.50
AUD/USD
AUD/USD holds its descend near 0.7800 support level and show mild recovery. The bearish pressure is strong and current bounce might reverse instantly to break below 0.7800. Traders might want to wait to place position in AUD/USD until it reach0.7875 or 0.7750.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000, 0.8100