USDX (USD Index)
U.S dollar index tumble today following the victory by Democrat seizing the house of representatives from Republic. Policies by President will come in check before it could be implemented. This means the situation in the global market might stabilize. If the situation followed by an agreement between U.S-China on trade then we might see U.S dollar continue its downward movement.
However, The Fed will come into the spotlight tomorrow as they set interest-rate. A more hawkish Fed could reverse the 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 jumped above the red trendline and riding the wave upside. It reached a level near 1.1500 and completed our first target. Currently, we will wait for the pair challenging 1.1500 to determine if it could continue upward to 1.1580. Under the strong momentum, we think EUR/USD could reach 1.1580 by the end of the week. However, it will depend on tomorrow FOMC result too.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
The distance of GBP/USD from the daily SMA 200 is narrowing and it could reach it anytime. Nothing change in our expectation yet. The pair could test the resistance and either breakout or rejected from it. Traders could continue to hold the long position and wait for the reaction near daily SMA 200.
Today Critical level to watch:
Support: 1.3125, 1.3050, 1.3000, 1.2800
Resistance: 1.3200, 1.3250
USD/JPY
The bullish trend in USD/JPY might come under check as the pair reverse sharply today. The closure below previous day low will produce a bearish engulfing pattern which if confirmed will lead USD/JPY downside. At the current time, the range between 112.50 – 113.20 still intact and USD/JPY projected will move between it.
Today critical level to watch:
Support: 113.00, 112.50, 112.00
Resistance: 113.20
AUD/USD
A touchdown at 0.7300 happen in AUD/USD today and completed our first upward target. The pair might continue upward toward 0.7330 but traders might want to protect the long position by moving stop to a level near 0.7160. A short position is not suggested yet as there is no reaction from the resistance level. A close above 0.7330 means further bullish continuation.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7040, 0.7000
Resistance: 0.7300, 0.7330