USDX (USD Index)
U.S dollar index proceeds higher but stays limited below 95.00. The upward movement of the index should continue in coming days as the index has escaped 94.00 resistance. On the upside, the index will target 95.50 – 96.30 and the bearish trendline. If the index could break both levels, daily SMA 200 is the next target.
News to watch
10.30 PM RBA Rate Statement
For full outlook for this week, you can follow Forex Outlook For The Week 6 – 10 Nov 2017
Technical Analysis
EUR/USD
EUR/USD continue lower on strong momentum Friday and Monday. The pair is currently looking to extend downward movement toward 1.1500. If the support level broke, we could see the pair continue down to 1.1300 – 1.1360 area. Traders could continue to hold short position and look to add more short positions on the pullback.
Today critical level to watch:
Support: 1.1580, 1.1500, 1.1360
Resistance: 1.1650, 1.1710, 1.1820
GBP/USD
GBP/USD halted drop on Friday and start a mini-rally today. The pair supported by the broken downtrend line on the daily chart. If the pair continues lower, it will test the daily SMA 200 which is not far from current level. Traders could look for long position near the support level if there is a strong bullish reaction.
Today critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3100, 1.3250, 1.3300, 1.3342
USD/JPY
USD/JPY move above 114.50 and trigger more buying above it, but the bear back in control immediately after the break above resistance. Currently, the pair look will close near its opening level and trigger correction period. The pair expected to move in a triangle pattern with bullish bias and top at 114.50.
Today critical level to watch:
Support: 113.20, 112.50, 112.00, 111.60
Resistance: 114.50, 115.00
AUD/USD
The bear back in control as AUD/USD fell below daily SMA 200. However, the downward pressure slowly diminish today before RBA rate announcement. Without any change in the rate and fundamental outlook, AUD/USD might continue lower toward 0.7500 – 0.7550.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7690, 0.7750, 0.7800, 0.7875