USDX (USD Index)
U.S dollar index encounters selling near 94.00, and the index closed near its opening level on Wednesday. Overall, the upward movement not done yet and the bull might attempt to push the index higher by the end of the week. Traders could continue to watch the index and look for reversal sign
News to watch
04.30 AM UK Retail Sales m/m expectation -0.1%
08.30 AM U.S Unemployment Claims, estimate reading of 240k
For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 Oct 2017
Technical Analysis
EUR/USD
EUR/USD shows bullish sign after the previous day bullish close. The pair is currently testing 1.1820 resistance and stick near it. There is no conclusion yet, and the pair should continue its movement inside 1.1710 – 1.1820. Traders could look for short position near 1.1820 with a stop above 1.1880.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1900, 1.1920, 1.2000
GBP/USD
GBP/USD halted the drop in the previous day session. The pair attempt to move up today, but stay inside the previous day range. Without any change to the sentiment, we expect GBP/USD drops further to test the daily SMA 200 or 1.3000.
Today critical level to watch:
Support: 1.3000
Resistance: 1.3250, 1.3300, 1.3342, 1.3400
USD/JPY
There is no weakness seen on the USD/JPY daily chart. The pair surge to reach 113.20 and currently testing the resistance. Traders might see a breakout soon above the resistance if there is no change in sentiment. On the other hand, a rejection could put USD/JPY back to the sideways scenario between daily SMA 200 and 113.20.
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 is moving sideways between 0.7800 – 0.7875 and expected to continue its sideways movement. Even though it looks bullish, traders could continue to look for short position near 0.7875 until breakout happens.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000