USDX (USD Index)
U.S dollar index bounced from 94.30 support again but cannot distance itself from the support level. Today, there is a bearish pressure which pushes the index down to test 94.30 again. It seems the support might be broken this week and U.S dollar index might be traded near 94.00 by the end of the week. We still maintain a bullish outlook in the U.S dollar index as trade tension could flare up at any time.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 17 – 21 September 2018
Technical Analysis
EUR/USD
The bull is in control of EUR/USD but it could not surpass 1.1710 as expected. EUR/USD expected to continue its sideways movement between 1.1500 – 1.1710 until next week. If the pair manages to close above 1.1710 then it might stick near the resistance level and traders better continue monitor until U.S rate announcement.
Today critical level to watch:
Support: 1.1650, 1.1600, 1.1580, 1.1500
Resistance: 1.1710
GBP/USD
GBP/USD print a new higher high in the previous trading day and almost touch 1.3250 resistance. However, the bear took the helm and push the pair back to the opening level. Fortunately, the bearish pressure could not bring the pair below 1.3125 and provide another opportunity for the bull to send the pair higher again.
We expect GBP/USD will reach 1.3250 and 1.3300 – 1.3330 area soon.
Today critical level to watch:
Support: 1.3125, 1.3100, 1.3000, 1.2800
Resistance: 1.3250, 1.3300
USD/JPY
Touchdown on 112.50 resistance has not happened yet. However, traders could treat recent up movement as a touch on resistance and expert a correction soon. If correction happens then USD/JPY expected to move down to 111.00 or the red trendline. On the other hand, another upward push above 112.50 could bring the pair to test 113.20.
Today critical level to watch:
Support: 112.00, 111.00, 110.50, 110.00
Resistance: 112.50, 113.00, 113.20
AUD/USD
The bounce scenario in AUD/USD almost completed as the pair creep higher toward 0.7300 – 0.7330. The pair riding the upward movement comfortably and nothing changed yet. We expect AUD/USD to reach the resistance area and stick near it until The Fed interest-rate announcement.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7000
Resistance: 0.7300, 0.7330