Forex Technical Major Pairs analysis October 12, 2017

USDX (USD Index)

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U.S dollar index fell from 94.00 resistance and had no trouble to reach 93.00 support. The index is currently testing the support level and shows initial sign of a bounce. The bounce from the support level will lead the index toward 94.00. Traders could expect more continuation until breakout happens. We expect an upward breakout in coming weeks or months.

News to watch

08.30 AM U.S PPI, estimated 0.4% increase monthly

U.S Unemployment Claims projected 251k benefit claimer

10.30 AM ECB President Draghi Speaks

11.00 AM U.S Crude Oil Inventories, estimated 1.9 million barrels deficit

Technical Analysis

EUR/USD

EUR/USD breakout above 1.1820 and close higher. The pair looks bullish but might have limited upside. There is downtrend line to watch and possible resistance at 1.1900 – 1.1920. There is the speech by ECB President Mario Draghi today which could drive volatility into the market. 1.1820 expected to hold selling today before the news.

Today critical level to watch:

Support: 1.1820, 1.1710

Resistance: 1.1900, 1.1925, 1.2000

GBP/USD

GBP/USD attempt to move higher today and reached 1.3250 before experience rejection. The bear is in control and rejection from 1.3250 is strong confirmation the trend will continue bearish. If the price closed lower than previous day low, it will form a bearish engulfing pattern and expected to test 1.3000 in short-term.

Today critical level to watch:

Support: 1.3000

Resistance: 1.3250, 1.3300, 1.3342, 1.3400

USD/JPY

The bull and the bear still fighting to gain an advantage against each other on USD/JPY daily chart. The pair continues its stalemate situation with another close near 112.50. Overall, the outlook is positive as the pair stays above daily SMA 200. As long as the pair stays above the averages, it is possible for USD/JPY to continue upward to 114.50.

Today critical level to watch:

Support: 112.00, 111.60, 111.00, 110.50

Resistance: 112.50, 113.20, 114.50

AUD/USD

AUD/USD is a good candidate for a short position as the pair launch to its resistance 0.7800 – 0.7810. If the pair could close the day below 0.7800, it will continue sideways between 0.7750 – 0.7800.

Today critical level to watch:

Support: 0.7800, 0.7750, 0.7690

Resistance: 0.7875, 0.7900, 0.7970

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