USDX (USD Index)
U.S dollar index rejected from the top of the yellow box and indicate ranging movement inside the yellow box will continue. Currently, the index is testing 95.00 support level. Will the bull maintain position and re-challenge the top of the box again this week?
News to watch
08.15 AM U.S ADP Non-Farm Employment Change, forecast increase of 195k
10.00 AM U.S ISM Non-Manufacturing PMI, forecast reading of 56.8
11.00 AM U.S Crude Oil Inventories, forecast deficit of 2.2 million barrels
For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 September 2018
Technical Analysis
EUR/USD
The pair holding out above 1.1580 and avoided a closed lower. Currently, EUR/USD is in an upward movement and testing 1.1640. It is possible we see the pair continue its upward movement toward 1.1710. However, there is ADP Non-farm data today and it is followed by Non-farm employment data on Friday. We expect the movement will be limited until Friday data released.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500, 1.1360
Resistance: 1.1650, 1.1710
GBP/USD
A sharp bullish reaction in the previous day trading session could mean the end of bearish dominance. However, 1.3000 is the level to watch, without any breakout above the level, GBP/USD will continue its bearish trend. Traders will continue watching the pair movement near 1.3000, the strong bearish pattern is a sign to add more short positions.
Today critical level to watch:
Support: 1.2800, 1.2700, 1.2625
Resistance: 1.3000, 1.3100
USD/JPY
USD/JPY have no clear direction yet as the pair losing ground in today trading session. We might see further weakness toward the red trendline before the close of the week. However, it is possible for the pair to continue upward also and reach 112.50.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50
AUD/USD
AUD/USD holding out above 0.7160 and escape from the bearish pressure. It means no breakout yet and the bull still has the chance to make a bounce in AUD/USD. Traders could start looking for a long position near the level with a tight stop below 0.7160. The job news at the end of the week might become the trigger for the next movement.
Today critical level to watch:
Support: 0.7160
Resistance: 0.7300, 0.7330