USDX (USD Index)
U.S dollar index traded lower in the previous trading day. It is following the track inside the yellow box and might drift lower to test 94.30 support level. Even though there is a bearish opportunity, traders might want to stick to the long side as The Fed set to announce interest-rate in the coming week.
News to watch
07.00 AM UK MPC Official Bank Rate Votes
07.45 AM EUR Main Refinancing Rate
08.30 AM ECB Press Conference
U.S CPI m/m, forecast increase of 0.3%, U.S Core CPI m/m forecast increase of 0.2%
For full outlook for this week, you can follow Forex Outlook For The Week 10 – 14 September 2018
Technical Analysis
EUR/USD
EUR/USD closed higher in the previous trading day but stay lower below the trendline and 1.1640. There is a possibility the pair could move further higher. However, it is better to wait for the close above 1.1640 to happen first before placing any long position.
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500, 1.1360
Resistance: 1.1650, 1.1710
GBP/USD
GBP/USD started to look bullish especially when the pair stick near the 1.3050 resistance. If the bull could break the resistance then it will enter the higher range between 1.3050 – 1.3250. Even though it looks bullish, 1.3000 – 1.3050 is the ideal place to look for a short position at the moment. Traders might want to stick to the short side and wait until strong bearish pattern formed.
Today critical level to watch:
Support: 1.3000, 1.2800, 1.2700, 1.2625
Resistance: 1.3100, 1.3125
USD/JPY
No change to the USD/JPY projection, the pair expected to trade inside 110.00 – 112.00 range. Traders could use the moment to continue trade the range with a bullish bias.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50
AUD/USD
AUD/USD finally closed above 0.7160 and showing bounce sign. The pair continues moving upward today and could extend the gain toward 0.7300 – 0.7330 area. Traders could use the moment to place a long position with a tight stop below 0.7160. However, when the pair reaches 0.7300 – 0.7330, it is better to scale out of long position and switch to short when a bearish pattern formed.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7000
Resistance: 0.7300, 0.7330