USDX (USD Index)
U.S dollar index experience sudden sells-off in H4 chart but contained near the 98.10 – 98.40 support area. The price under a risk of further decline as it stay below the long candle. The bull needs to remove 98.80 to make the price advance.
News to watch
The UK quarterly Prelim GDP came out better than expected at 0.5% increase vs. 0.3% estimate. The pound rallied in response to the news.
8.30 AM U.S monthly Core Durable Goods Orders expected to grow 0.2%
8.30 AM U.S unemployment claims estimate 261k benefit claimed this week.
For full outlook for this week, you can follow Forex Outlook For The Week October 24-28, 2016
Technical Analysis
EUR/USD
EUR/USD drop below 1.0910 but H4 chart show potential bullish attack toward the resistance. The price experienced five consecutive lower closes, but recent candle rallied, will it close as a long bullish candle and continue the rally?
Today critical level to watch:
Support: 1.0911, 1.0900, 1.0825, 1.0800, 1.0710
Resistance: 1.0960, 1.1000, 1.1020
GBP/USD
The struggle is real in GBP/USD chart, and the price recovered after a dip below the red bullish channel, but it has yet to close above 1.2250. Good advance GDP number sparked a rally, but the price only poked above 1.2250 before sold again. H4 chart has not closed yet, will we see a close above 1.2250?
Today critical level to watch:
Support: 1.2200, 1.2180, 1.2140, 1.2088
Resistance: 1.2250, 1.2270, 1.2325, 1.2500
USD/JPY
The trend of USD/JPY is bullish and looks unstoppable; it will break above 104.50 soon and target 105.00. The price maintains its bullish trend above the blue trendline, as long as the trendline respected, the trend will continue.
Today critical level to watch:
Support: 104.50, 104.00, 103.80, 103.20, 103.00
Resistance: 104.85, 105.00
AUD/USD
AUD/USD enjoyed a boost, but the bull unable to remove its major bearish trendline. The price reversed and moved lower, if it can close below 0.7590, the selling will accelerate to reach 0.7500 – 0.7550 area.
Today critical level to watch:
Support: 0.7589, 0.7550, 0.7500
Resistance: 0.7625, 0.7660, 0.7688, 0.7700