USDX (USD Index)
U.S dollar index was under pressure and reach 98.25 support level. This week, the market turns optimistic after U.S and China reach a partial deal on the trade negotiation. Stock markets move higher but traders might want to stay cautious as there is not much change in the U.S dollar index.
At the current level, it is possible that the U.S dollar index bounces and starts a new bullish leg.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 October 2019
EUR/USD
The pair managed to secure a close above 1.1000 and look will add further gain and target 1.1120. At the current time, the pair just return above its opening level after pressured lower. Long positions near 1.1000 could be the option, traders could take.
today critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120
GBP/USD
GBP/USD spiked from the bearish channel and reach SMA 200 and 1.2625 – 1.2800 area in a short time. The pair slightly lower today in a profit-taking reaction. It is better to stay sidelined for now as the reaction of GBP/USD will follow the fundamental development of Brexit which near the deadline this month.
Today Critical level to watch:
Support: 1.2500, 1.2400, 1.2300
Resistance: 1.2600, 1.2625, 1.2800
USD/JPY
USD/JPY broke above the triangle pattern and set to target 109.00 also daily SMA 200. The pair currently testing the broken line and look for a bounce from it. Long positions near the line and stop below 107.40 might become the options, traders could take.
Today critical levels to watch:
Support: 107.40, 107.00, 106.70
Resistance: 109.00
AUD/USD
AUD/USD settled inside the blue box area and extend its gain last week. The pair almost reached the top of the channel before it turned lower today. We could expect AUD/USD to continue its ranging movement inside the blue box area with a bearish bias. Short positions are the suggested position, traders could take for now until the pair make a breakout above the top of the channel.
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900