USDX (USD Index)
U.S dollar index movement is in line with expectation as the index continue higher to 94.00 resistance level. The upward movement looks will continue gradually. The only news which could reverse current upward movement is the speech by The Fed chief Janet Yellen on Friday. The index might receive rejection at 94.00 and look for support near trendline.
News to watch
08.30 AM U.S Building Permits estimated annualized 1.25 million permits issued
10.30 AM U.S Crude Oil Inventories, forecast 4.7 million barrels deficit
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 Oct 2017
Technical Analysis
EUR/USD
EUR/USD might be near the end of its swing down. Traders could see three bullish candlesticks and five bearish candlesticks which the bear need to neutralize the buying. If the bear could not add more advantage, the bull might reverse the selling with 1 or 2 candlesticks. 1.1710 is the support to watch for a reaction, and the pair might continue sideway before Yellen speech on Friday.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1900, 1.1920, 1.2000
GBP/USD
GBP/USD losing ground on Tuesday and the pair closed below 1.3250 which indicate further downside. The downward pressure might slow down near the trendline. If the trendline is broken, GBP/USD will head to the daily SMA 200 or 1.3000 for a test.
Today critical level to watch:
Support: 1.3000
Resistance: 1.3250, 1.3300, 1.3342, 1.3400
USD/JPY
USD/JPY on the path higher after the bounce from daily SMA 200. The pair currently moves past 112.50 resistance and heading to test 113.20. If the 113.20 resistance is broken, traders could find USD/JPY on the path to 114.50. A long position near 112.50 is preferable after successful re-test.
Today critical level to watch:
Support: 112.50, 112.00, 111.60, 111.00, 110.50
Resistance: 113.20, 114.50
AUD/USD
AUD/USD rejected from 0.7875 as expected and projected to move between 0.7800 – 0.7875 until next direction settled. We favor further downside on the pair and a breakout below 0.7800 this week. Traders could position themselves with either short position or long position until actual breakout happen.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000