USDX (USD Index)
Since the Fed rate-hike, U.S dollar index is on the path higher and it almost reaches the top range at 95.50. We expect the index to stay on the bullish track and possibly break higher above 95.50. However, current projection also suggests the index could continue traded sideways between 94.00 – 95.50. Traders will observe the index reaction near 95.50 resistance.
News to watch
04.30 AM UK Manufacturing PMI, forecast reading of 52.6
10.00 AM U.S ISM Manufacturing PMI, forecast reading of 60.1
For full outlook for this week, you can follow Forex Outlook For The Week 1 – 5 October 2018
Technical Analysis
EUR/USD
EUR/USD bull is in trouble as the pair on the verge breaking down below 1.1580. If the pair continues lower, it will enter the range 1.1500 – 1.1580. Moreover, if the bearish pressure mounting, we might see breakout below 1.1500. Currently, the pair is testing the 1.1580 support, will we see breakout or bounce?
Today critical level to watch:
Support: 1.1600, 1.1580, 1.1500
Resistance: 1.1650, 1.1710, 1.1820
GBP/USD
The bear still has control over GBP/USD and made a touchdown at 1.3000 on Friday. There is no bounce sign yet and the pair will continue testing the support 1.3000. Traders might want to prepare for a breakout and taking a short position when retest of 1.3000 happen.
Today critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3100,1.3125, 1.3250,1.3300
USD/JPY
USD/JPY charging upside and breakout free from resistance 113.20. The pair has no short-term resistance to stop the bull from moving further upside. The nearest resistance is 114.50 – 114.72 and we could expect both levels will be touch soon.
Today critical level to watch:
Support: 113.20, 113.00, 112.50, 112.00
Resistance: 114.00, 114.50
AUD/USD
No change to the AUD/USD direction which is downside. Without a major change in the situation, traders could expect the pair to test 0.7160 this week.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7000
Resistance: 0.7300, 0.7330