USDX (USD Index)
U.S dollar index resumes its pullback after the rejection from a level near 96.70. The path downside is open and we might see 96.10 tested today. If the bearish pressure continues then we might see further continuation toward the trendline and 95.50 support level.
Today, U.S citizen will go and vote for midterm election. The result of the election will have an impact on policies taken by President Trump which might create a major shift in U.S dollar trend. Traders might want to see tomorrow result and reaction to determine medium-long term direction of U.S dollar index.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 5 – 9 November 2018
Technical Analysis
EUR/USD
EUR/USD averted sell-off in the previous day and bounced from 1.1360 support level as expected. The pair currently moving upward with strong momentum on U.S dollar index pullback. Strong data from Europe and cautious approach from traders and investors before U.S midterm election is the driving force behind EUR/USD bullish move.
If the red trendline is broken then we could expect EUR/USD will continue its upward movement toward 1.1500 – 1.1580 resistance area.u
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
Our target at the daily SMA 200 is not far away from the current level and we expect GBP/USD will continue its upward movement on U.S dollar weakness. When the pair reaches daily SMA 200, then it is time to scale out and wait for the market reaction. The short position might be possible but need to wait until a strong bearish reversal pattern formed.
Today Critical level to watch:
Support: 1.3050, 1.3000, 1.2800, 1.2625
Resistance: 1.3125, 1.3200, 1.3250
USD/JPY
The bull could not remove 113.20 in USD/JPY and currently stuck near the resistance. Another close below the level could trigger selling and put USD/JPY ranging between 112.50 – 113.20. Traders could take a short position near the top of the range with a downward target at 112.50.
Today critical level to watch:
Support: 113.00, 112.50, 112.00
Resistance: 113.20
AUD/USD
AUD/USD is challenging the red trendline resistance and might be able to break it today as U.S dollar weakened across the board. We maintain our upward target at 0.7300 – 0.7330. However, tomorrow U.S election result might drive some volatility into the market.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7040, 0.7000
Resistance: 0.7300, 0.7330