USDX (USD Index)

U.S dollar index reached the level around 96.70 and took a downward turn before it could reach the retracement level around 97.50. Downward correction brought the index back inside 94.30 – 95.50 area and showing bullish reaction near the bottom level. If the index could maintain upward momentum and break above 95.50 then we will see another attempt to move toward 97.50.

The market in the U.S is closed for labor day holiday which could lead to less volatility.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 September 2018

Technical Analysis

EUR/USD

EUR/USD recovered ground after 1.1300 – 1.1360 area test. The recovery touched 1.1710 major level and turn downward before EUR/USD found support at 1.1580. There is the chance the bull will push the pair further upside above 1.1710 and 1.1500 – 1.1580 is the area to watch for a long position.

Today critical level to watch:

Support: 1.1600, 1.1580, 1.1500, 1.1360, 1.1300

Resistance: 1.1650, 1.1710

GBP/USD

GBP/USD respected the bearish trendline shown on the daily chart and moving toward 1.2800 now. We think the pair could reverse upside if it could not move lower below previous week low. On the other side, 1.2800 might become vital level to determine if bounce or breakdown will happen.

Today critical level to watch:

Support: 1.2800, 1.2700, 1.2625

Resistance: 1.3000, 1.3100

USD/JPY

USD/JPY holding out above 111.00, flipping upside and downside the level while searching for direction. There is no clue on the next direction of USD/JPY and it is better for traders to stay sideline.

Today critical level to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.50

AUD/USD

AUD/USD make a touchdown on the 0.7160 target level and completed the bearish leg after 0.7330 breakouts. We have no clue yet on next direction, bounce or breakout could happen. However, we prefer to switch to the long side especially when the pair could print a bullish candlestick pattern.

Today critical level to watch:

Support: 0.7160

Resistance: 0.7300, 0.7330