Forex Technical Major Pairs analysis October 10, 2018

USDX (USD Index)

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There is an interesting development in the U.S dollar index and U.S stock market movement. When this article was written, U.S dollar index slide below 95.50 support and Dow Jones Industrial Averages skid 400 points. It is a rare situation and could lead to major events. Traders now will observe the U.S dollar index inside the yellow box area between 94.30 – 95.50.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 8 – 12 October 2018

Technical Analysis

EUR/USD

EUR/USD averted sell-off and return above 1.1500 today after a breakout above bullish pin bar pattern. It is undoubtedly major upset for the bear and we could expect the bullish bounce turnout into trend changing movement. Nevertheless, EUR/USD needs to move above blue box area to confirm the medium-term bullish reversal.

Today critical level to watch:

Support: 1.1500, 1.1360, 1.1300

Resistance: 1.1580, 1.1600

GBP/USD

Improving situation between Europe and UK on Brexit deal helped GBP/USD to gain against U.S dollar. The pair close above 1.3000 turns into a rally and currently GBP/USD traded at 1.3200, ready to challenge 1.3250 resistance. If the bull could breakout above SMA 200 then traders could see the pair enter new bullish trend.

Today critical level to watch:

Support: 1.3125, 1.3100, 1.3050, 1.3000

Resistance: 1.3200, 1.3250

USD/JPY

USD/JPY extend losses below 113.20 and touch a level near 112.50. The pair has not shown any bullish sign and we could expect more test on 112.50 support level. If there is no bounce from the support level then it might be the time to switch to the short side.

Today critical level to watch:

Support: 112.50

Resistance: 113.00, 113.20, 114.00

AUD/USD

Temporary support formed on AUD/USD daily chart and the pair start an upward correction. The upward movement expected to reach 0.7160 and test the resistance level before the next direction settled. Shorting near 0.7160 might be a good option to watch.

Today critical level to watch:

Support: 0.7100, 0.7000

Resistance: 0.7160, 0.7300, 0.7330

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