USDX (USD Index)
Lower inflation number in the previous day drove U.S dollar index further lower and enter the yellow range area. It found support at 95.00 but expected to continue its weakness to the bottom of the box. Meanwhile, we might not have much movement today as this is the last day of the week. Traders could prepare a short position when the index hit the top of the box at 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 successfully climb above 1.1580 and confirm the start of a new bullish leg. The pair will find support at 1.1500 – 1.1580 where traders could look for a long position with a stop below this week low. If U.S dollar continues to weaken on no December no rate-hike sentiment then EUR/USD will reach 1.1710 immediately.
Today critical level to watch:
Support: 1.1580, 1.1500, 1.1360, 1.1300
Resistance: 1.1600, 1.1710
GBP/USD
GBP/USD closed higher again in the previous day and closer to the daily SMA 200. No rejection from the resistance level and no clue for next movement yet. The short position might be a good idea near the averages. However, without any strong rejection, it is better to stick with small positions.
Today critical level to watch:
Support: 1.3200, 1.3125, 1.3100, 1.3050
Resistance: 1.3250, 1.3300
USD/JPY
The pair upward movement capped at 112.50 and traded between 112.00 – 112.50. Intraday traders could use the range to trade either short or long position. Long-term traders better stay sideline, for now, looking for a breakout of the range.
Today critical level to watch:
Support: 112.00
Resistance: 112.50, 113.00, 113.20
AUD/USD
AUD/USD formed a bullish candlestick yesterday and bringing the pair up to test 0.7160. At the current time, we favor breakout upside as there could be a shift in U.S dollar sentiment. However, without any clean breakout above 0.7160, it is better to stick to the short side.
Today critical level to watch:
Support: 0.7100, 0.7000
Resistance: 0.7160, 0.7300