USDX (USD Index)
The rejection from resistance 97.50 brought U.S dollar index down but could not hinder the index from moving upside again today. We might have another test on 97.50 resistance while The Fed chief Jerome Powell giving a speech today. A hawkish comment is expected and anything other than hawkish means bearish reversal for U.S dollar index.
News to watch
08.30 AM U.S CPI m/m, forecast increase of 0.3%
Core CPI m/m, forecast increase of 0.2%
06.00 PM Fed Chair Powell Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 12 – 16 November 2018
Technical Analysis
EUR/USD
EUR/USD absolutely “No buy” at the current level even th0ugh the pair could close the day positive. A breakout below 1.1300 – 1.1360 area is the main reason why the pair has turned entirely bearish. Currently, there is an attempt to move the pair upside. We think EUR/USD will not surpass 1.1300 – 1.1360.
Today critical level to watch:
Support: 1.1200, 1.1120
Resistance: 1.1300, 1.1360, 1.1500, 1.1580
GBP/USD
Similar situation as in EUR/USD, the pair is in trouble after slipping below its major support level. GBP/USD upside currently capped at 1.3000 and traders could use the level to take a short position. Brexit result and The Fed interest-rate outlook will become the major determinant of GBP/USD next movement.
Today Critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3125
USD/JPY
Nothing change in the analysis of USD/JPY, the pair hanging near the high and could continue further upside toward 114.50 – 115.00 area. Short position better is taken near 114.50 – 115.00 area when there is a strong bearish reaction. The long position might need to wait until the pair corrected lower.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.50, 115.00
AUD/USD
The bounce from 0.7160 lead AUD/USD higher 50 pips from the support level. It seems bullish, however, how far the bullish momentum could stand? At the current time, AUD/USD showed rejection from the red trendline and might make another test on 0.7160 support level.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7040, 0.7000
Resistance: 0.7300, 0.7330