USDX (USD Index)

U.S dollar index breakout above 95.50 received with correction and retest on the broken resistance before it bounces today. We have initial confirmation of bounce and the bull only need to maintain the index level near previous week high to establish the path higher. Nothing to hinder the bullish move in the index yet and we expect 96.70 will be reached soon.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 8 – 12 October 2018

Technical Analysis

EUR/USD

The bear opened the week by bringing EUR/USD down below 1.1500 and looks will test previous week low. A movement below previous week low will confirm the bearish continuation toward 1.1300 – 1.13600 area. Shorting at the current level is possible but with lower risk-reward compared to shorting inside 1.1500 – 1.1580 area.

Today critical level to watch:

Support: 1.1360, 1.1300

Resistance: 1.1500, 1.1580, 1.1600

GBP/USD

Stay sideline might be the best idea to do in GBP/USD now. The pair manages to hold the position above 1.3000 and averted sell-off. However, no solid bounce yet from the support level and the pair could start moving lower again. Long position near 1.3000 is enticing but need a bullish confirmation first.

Today critical level to watch:

Support: 1.3000, 1.2800

Resistance: 1.3100,1.3125

USD/JPY

We projected a test of 113.20 and it happen today in USD/JPY. If the pair could stay above the support level and print a bullish candlestick then we could expect bullish continuation above 114.50. On the other hand, breakout below 113.20 will open the path to test 112.50.

Today critical level to watch:

Support: 113.20, 113.00

Resistance: 114.00, 114.50, 115.00

AUD/USD

No change to the AUD/USD outlook yet, 0.7000 is exposed and the bearish target for this week. Shorting near 0.7160 is the strategy traders could watch this week.

Today critical level to watch:

Support: 0.7000

Resistance: 0.7100, 0.7160, 0.7300, 0.7330