USDX (USD Index)
U.S dollar index pulled lower as there is tweet by President Trump today that he will meet China’s vice-premier Liu He tomorrow. It is positive news as there was news circulating that China’s delegation will leave Washington earlier on Thursday.
Under the current situation, the U.S dollar index might continue lower but expect sudden reversal if the trade talks failed.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 7 – 11 October 2019
EUR/USD
EUR/USD crossed 1.1000 and above the trendline. The pair might attempt to settle above both resistances and set for further upward movement. Traders will need more confirmation and wait for the trade talk result announcement. We might see the pair move wildly at the current level.
today critical levels to watch:
Support: 1.1000, 1.0900, 1.0800
Resistance: 1.1120
GBP/USD
Positive development on the Brexit is the news that bull traders waiting for. GBP/USD launch upward above the top of the channel today after UK Boris Johnson and Irish PM Leo Varadkar hold a meeting to set a deal for Brexit. GBP/USD might continue upward if the meeting produces a satisfying Brexit deal.
Today Critical level to watch:
Support: 1.2300, 1.2200, 1.2000
Resistance: 1.2400, 1.2500, 1.2600
USD/JPY
USD/JPY also experience positive development today. The pair launch upward from 107.00 support level and soon will test the trendline resistance. The pair might stick near the trendline until the U.S-China trade talk conclusion. At the current time, it is better to stay sideline.
Today critical levels to watch:
Support: 107.40, 107.00, 106.70
Resistance: 109.00
AUD/USD
AUD/USD might enter the bullish correction phase as the pair ready to challenge the previous week’s high. A close inside the blue box area by the end of the week might become the trigger for the pair to consolidate inside the area. We think the bearish trend will continue and traders could use the top of the blue box area or the top of the channel to look for short positions.
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900