USDX (USD Index)
The upward movement of U.S dollar index has reached 94.00 resistance in the previous day, and it looks like the index stall near it. There is no news to trigger breakout until Thursday where ECB will announce interest rate decision. Expect the index continue sideways or move lower to test the black trend line.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 23 – 27 Oct 2017
Technical Analysis
EUR/USD
EUR/USD downward movement brought the pair down near the support 1.1710, but at the end of the day, the pair bounce and close right at the triangle. No valid breakout yet on the pair and traders could expect consolidation continue inside the triangle.
Today critical level to watch:
Support: 1.1710, 1.1650
Resistance: 1.1820, 1.1900, 1.1920, 1.2000
GBP/USD
No change to the outlook in GBP/USD compared to previous day. The pair is waiting for a breakout, and it could break either upside or downside. Wednesday UK GDP data and Thursday ECB interest rate decision might drive the market direction.
Today critical level to watch:
Support: 1.3000
Resistance: 1.3250, 1.3300, 1.3342
USD/JPY
USD/JPY reversal in the Monday trading session bring the pair back inside Friday range even though it has touch 114.09 intraday high. The closure inside Friday range open chance for traders who are looking for a long position. Traders could look for long position near 113.20 breakout level when a bullish pattern formed.
Today critical level to watch:
Support: 113.20, 112.50, 112.00, 111.60
Resistance: 114.50
AUD/USD
AUD/USD continues to trade between 0.7800 – 0.7875 and currently up after test of 0.7800. There is no change to the outlook, and the pair should continue moving inside the range.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000