USDX (USD Index)

U.S dollar index settled below the daily SMA 200 yesterday. The index is under threat of further bearish movement. However, it currently attempting to return above the averages. The index next direction will depend on where the index settles at the end of the week. A close near SMA 200 is neutral while further bearish close is a confirmation for further bearish movement.

News to watch

08.30 AM U.S Non-Farm Employment Change, forecast 90k

U.S Unemployment Rate, forecast 3.6%

For full outlook for this week, you can follow Forex Outlook For The Week 28 October – 1 November 2019

EUR/USD

The pair closed as doji candlestick which provides us with a neutral situation. EUR/USD expected to continue its ranging movement between 1.1120 – 1.1185. Traders will continue to apply ranging strategies with a bullish bias for now.

today critical levels to watch:

Support: 1.1120, 1.1000, 1.0900

Resistance: 1.1185

GBP/USD

GBP/USD extended its bullish close and soon will test 1.3000 resistance. No change to the outlook of the pair yet which moves inside 1.2800 – 1.3000 range. Traders will observe the pair reaction at 1.3000 and enter short positions when there are major bearish reactions.

Today Critical level to watch:

Support: 1.2800, 1.2625, 1.2600, 1.2500

Resistance: 1.3000

USD/JPY

USD/JPY has a bearish confirmation and the pair should continue its bearish movement toward 107.00 – 107.40 area. No follow-through by the bear yet today. Traders might want to wait for a bullish correction to enter short positions. Alternatively, traders could look for long positions near 107.00 – 107.40.

Today critical levels to watch:

Support: 107.40, 107.00, 106.70

Resistance: 109.00

AUD/USD

AUD/USD formed a bearish pin bar pattern yesterday. It is a bearish pattern but under the current situation, we could regard the candlestick as profit-taking candlestick. As long as there is no bearish close below the candlestick low, we expect the pair to reach SMA 200 or 0.7000.

Today critical levels to watch:

Support: 0.6800, 0.6750, 0.6700

Resistance: 0.6900