USDX (USD Index)
The advance of U.S dollar index is predicted and moving smoothly as expected. The index bounce from 93.00 support and currently creeping higher. The upward movement of U.S dollar index might test 94.00 this week or coming weeks. Will the index break higher this time?
News to watch
04.30 AM UK CPI y/y expectation increase of 3.0%
06.15 AM BOE Gov Carney Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 Oct 2017
Technical Analysis
EUR/USD
EUR/USD slightly lower following the weak close on Friday. The pair currently moves below 1.1820 and looks will target 1.1710. A break below 1.1710 might lead the pair lower to 1.1500 – 1.1580. Traders could look for short position and hold it when the pair confirmed breakout below 1.1710.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1900, 1.1920, 1.2000
GBP/USD
GBP/USD bullish outlook turn neutral as the pair back at the tipping point 1.3250. Traders might stay sideline for a while until the pair move away from 1.3250. Today CPI data might produce some volatility which will move the pair either side.
Today critical level to watch:
Support: 1.3250, 1.3000
Resistance: 1.3300, 1.3342, 1.3400
USD/JPY
USD/JPY printed a bullish candlestick on the Monday trading session. The candlestick looks like a bullish piercing pattern which indicates more bullish movement. If the pair could break above Monday-Friday high, it looks like the bull will try to bring the pair toward 113.20 and higher.
Today critical level to watch:
Support: 112.00, 111.60, 111.00, 110.50
Resistance: 112.50, 113.20, 114.50
AUD/USD
AUD/USD closed above 0.7875 on Friday, but the pair slip below it again on Monday trading session. The close indicates AUD/USD might move sideways between 0.7800 – 0.7875 for short-term. If the bearish momentum builds up when the pair test 0.8000 it might break lower and test daily SMA 200.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000