USDX (USD Index)
U.S dollar index blast through 94.00 and confirmed the bullish trend continuation. Currently, the bull continuesµ dominating the market and might push the index higher toward 95.00 – 95.50. Traders who are looking for a long position in U.S dollar pair now can use 94.00 as support.
News to watch
08.30 AM U.S Advance GDP, estimated reading of 2.6%
For full outlook for this week, you can follow Forex Outlook For The Week 23 – 27 Oct 2017
Technical Analysis
EUR/USD
EUR/USD rejected from the top of the blue triangle and made a double break in the previous trading day. The pair break outside of triangle and below 1.1710. The breakout confirmed bearish shoulder-head-shoulder pattern which makes the outlook moderately bearish. Currently, the downside target for EUR/USD lies within 1.1500 – 1.1580. On the long-term basis, 1.1300 – 1.1360 is another prospective target area.
We might not see the price hover above 1.1710 until next year.
Today critical level to watch:
Support: 1.1580, 1.1500, 1.1360
Resistance: 1.1650, 1.1710, 1.1820
GBP/USD
GBP/USD made a shocking “V” turn from 1.3250 resistance and cancel previous bullish breakout. The pair breaks lower and opens the downward scenario toward 1.3000 or the daily SMA 200. Both levels are strong levels where traders could look for a long position, but traders must observe the downward momentum. If GBP/USD only need 1-2 days to reach the support level, it is better to wait&see or stake small position.
Today critical level to watch:
Support: 1.3000
Resistance: 1.3250, 1.3300, 1.3342
USD/JPY
USD/JPY silent near 114.50 resistance level, the pair waiting for momentum to break above previous swing high. Even though most major pairs moved after ECB press conference Yesterday, USD/JPY not convinced yet for another higher high. Observe reaction near 114.50 – 115.00 to determine if bullish leg will continue or not.
Today critical level to watch:
Support: 113.20, 112.50, 112.00, 111.60
Resistance: 114.50, 115.00
AUD/USD
AUD/USD abandoned daily SMA 200 and retreated below the support. There is no sign of reversal yet, and the pair might continue downward to 0.7500 – 0.7550. Bear traders could look for short position when the pair re-test daily SMA 200 or 0.7690.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7690, 0.7750, 0.7800, 0.7875