USDX (USD Index)

The waiting game still in progress after the U.S dollar index extends its gain above daily SMA 200. We have bounced from the averages and it looks like the index might start a new bullish long-term leg. Will the index print a higher high above the previous week high to confirm the uptrend?

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 4 – 8 November 2019

EUR/USD

EUR/USD is the opposite of the U.S dollar index and the pair pressed lower yesterday. The weakness might continue but we have a pause near the previous week low currently. If the pair could close below the previous week low then we could expect further weakness toward 1.10000.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

No much movement in GBP/USD even though most major pairs fell against the U.S dollar. It is common as tomorrow the market will observe BOE interest-rate decisions. We might have a major momentum movement soon. However, without any breakout of 1.2800 – 1.3000 then GBP/USD will continue trade inside it.

Today Critical level to watch:

Support: 1.2800, 1.2625, 1.2600, 1.2500

Resistance: 1.3000

USD/JPY

USD/JPY closed above 109.00 and SMA 200 which are major levels. It could mean the pair has reversed its bearish trend and return to a bullish trend. Traders could use broken levels as a place to look for long positions. On the upside, 110.00 will become the target.

Today critical levels to watch:

Support: 109.00, 107.40, 107.00

Resistance: 110.00

AUD/USD

AUD/USD rejected from the trendline and relinquished most of its gain yesterday. Despite the higher high printed on the chart, there is a chance the pair will reverse and start moving lower. As long as there is no lower low printed below previous week low then AUD/USD still has chance to continue upside.

Today critical levels to watch:

Support: 0.6800, 0.6750, 0.6700

Resistance: 0.6900