USDX (USD Index)
U.S dollar index making downturn after possible reconciliation between U.S-China on trade war this month. It is a good news if agreements reached between both parties. However, from the technical view, the index print a higher high and current downturn could be regarded as a correction. 95.50 and 96.10 will become the target level for correction.
Meanwhile, shorting the U.S dollar pair might be the choice traders could take.
News to watch
08.00 AM UK MPC Official Bank Rate Votes
08.30 AM BOE Gov Carney Speaks
10.00 AM U.S ISM Manufacturing PMI, forecast reading of 59.0
For full outlook for this week, you can follow Forex Outlook For The Week 29 – 2 November 2018
Technical Analysis
EUR/USD
A strong reaction is what the bull needed to turn EUR/USD higher and we have reaction from 1.1300 support level today. The bullish reaction brings EUR/USD up almost 100 pips, leaving 1.1300 – 1.1360 area. Under the current situation, the pair expected to continue its bullish traction until the end of the week. 1.1500 – 1.1580 might become the target once again.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
GBP/USD launched from below 1.2800 and currently halfway toward 1.3000. The pair moving under strong bullish momentum and we could expect it reach 1.3000 or daily SMA 200 in short-term. Overall trend still bearish and suggest traders look for short positions when the pair losing momentum near resistances.
Today critical level to watch:
Support: 1.2800, 1.2625
Resistance: 1.3000, 1.3050
USD/JPY
The pair stall after it reached 113.20 and currently waiting for a trigger to continue upward movement. Fundamentally, the global market situation might turn better on U.S-China positive news which means USD/JPY could move further upside. Meanwhile, the range span between 112.50 – 113.20 and traders could use it as guidance to take positions.
Today critical level to watch:
Support: 112.50, 112.00, 111.00, 110.50
Resistance: 113.00, 113.20
AUD/USD
A major shift of trend happens in AUD/USD as the pair moving upward with strong momentum. The pair has claimed 0.7160 and currently testing it. Under this strong momentum, we think the breakout is imminent and AUD/USD could start a new bullish leg toward 0.7300 – 0.7330. Shorting is not suggested unless AUD/USD stalls for few days and print a strong bearish reversal pattern.
Today critical level to watch:
Support: 0.7100, 0.7040, 0.7000
Resistance: 0.7160, 0.7300