USDX (USD Index)
Upside breakout not happened in the previous day as U.S dollar index settles below 95.50 resistance. However, the index continuously attacking the resistance level today and looking for breakout upside. Globally, currencies in emerging market suffer steep losses against U.S dollar and suggest further weakness in coming days.
Traders will watch the index movement near 95.50 and waiting for either breakout or rejection.
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 following U.S dollar index guidance and stick near the major level 1.15800. No rejection from the level yet, however, the bull manages to contain selling pressure and close the day above 1.1580. We might see further bearish pressure but it is better for traders to stay sideline until a close below 1.1580 happen or bullish pattern formed.
Today critical level to watch:
Support: 1.1580, 1.1500, 1.1360
Resistance: 1.1600, 1.1650, 1.1710
GBP/USD
No change in GBP/USD outlook which currently testing the support level 1.2800. The pair showing no reaction yet near the level and suggesting traders stay sideline for now.
Today critical level to watch:
Support: 1.2800, 1.2700, 1.2625
Resistance: 1.3000, 1.3100
USD/JPY
USD/JPY range projected between 111.00 – 112.00. There is an attempt to bring the pair toward 112.00, but the bull losing momentum. It seems the pair might close near its opening level today and showing no clue yet on next direction.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50
AUD/USD
Weakness persists in AUD/USD as the pair print lower low today. Fortunately, the bull immediately seizes control and bring the pair above 0.7160. As long as there is no breakout below 0.7160, traders could expect AUD/USD ranging between 0.7160 – 0.7330.
Today critical level to watch:
Support: 0.7160
Resistance: 0.7300, 0.7330