USDX (USD Index)
U.S dollar index closes above 95.00 and change to a neutral situation. The bearish pressure still persists but it looks like the bear needs more time to break support level. We still expect the index will trade between 94.00 – 95.50. Meanwhile, it is better to stay cautious and monitor the development of global sentiment.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 15 – 19 October 2018
Technical Analysis
EUR/USD
Not much movement in EUR/USD yet from 1.1580 resistance. The pair sticks near it and continue traded sideway. If U.S dollar index continues its weakness then we could expect EUR/USD start moving up toward 1.1710. Meanwhile, both bearish and bullish scenario still possible to happen at the current level.
Today critical level to watch:
Support: 1.1500, 1.1360, 1.1300
Resistance: 1.1580, 1.1600, 1.1710
GBP/USD
GBP/USD gapped down but manage to reclaim most of its losses. Today, the pair stage rally as expected and ready to challenge daily SMA 200 again. Without any change in the trend, we expect GBP/USD to break above SMA 200 and continue its upward trend.
Today critical level to watch:
Support: 1.3125, 1.3100, 1.3050
Resistance: 1.3200, 1.3250, 1.3300
USD/JPY
Another lower close in USD/JPY make bull traders lose faith in the pair bullish trend. It closed below 112.00 and risk further downside. However, the bull return to the market and give hope for USD/JPY to return above 112.00 and back into bullish trend. 112.50 will become the major resistance level to watch when the pair move up. On the downside, 111.00 and 110.50 will become the downward target.
Today critical level to watch:
Support: 112.00, 111.00, 110.50
Resistance: 112.50, 113.00, 113.20
AUD/USD
The pair hesitated below 0.7160 and losing its bullish momentum. It is the second day the pair closed without major upside movement. Today, the pair attempt to move higher but rejected near the level and traded below its opening level. Will we see rejection from 0.7160 and bearish continuation?
Today critical level to watch:
Support: 0.7100, 0.7000
Resistance: 0.7160, 0.7300