USDX (USD Index)

U.S dollar index manages to hold its ground above 93.00 and complete the downward movement in the previous week. There is no indication of a bounce yet, but traders could start to anticipate the possible bounce this week. No change to the range projection between 93.00 – 94.00 until it is broken.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 16 – 20 Oct 2017

Technical Analysis

EUR/USD

EUR/USD is waiting for a break. The pair found support at 1.1710 and launched upside to the 1.1820. Although it closed above 1.1820, the close look neutral as it reversed all gain achieve on Friday. If the pair moves lower than Friday low, there is a possibility it will test 1.1710 and break lower.

Today critical level to watch:

Support: 1.1820, 1.1710

Resistance: 1.1900, 1.1920, 1.2000

GBP/USD

The trend looks bullish on GBP/USD after the bull claimed 1.3250. However, Friday candlestick is not extremely bullish as it closed inside Thursday range. The candlestick has a long shadow which might indicate the return of the bear or profit taking. This week, expect 1.3250 tested before further move either upside or downside.

Today critical level to watch:

Support: 1.3250, 1.3000

Resistance: 1.3300, 1.3342, 1.3400

USD/JPY

USD/JPY slipped on Friday below 112.00 and printed a mild bearish candlestick. Despite the close lower and the bearish pressure, the situation still a “safe” for the bull. Here is why:

1. The pair closed near the daily SMA 200
2. There is no lower low yet printed on the chart.

If this week, the pair continue to stay above the daily SMA 200 and no lower low printed, USD/JPY could build momentum upside toward 114.50.

Today critical level to watch:

Support: 111.60, 111.00, 110.50

Resistance: 112.00, 112.50, 113.20, 114.50

AUD/USD

AUD/USD bullish momentum accelerate on Friday, the pair break upside above 0.7875. The bullish momentum looks will continue and might test 0.8000. However, the lower low printed after the pair move below 0.7800 might limit the optimism and reverse the pair when it reaches resistance.

Today critical level to watch:

Support: 0.7875, 0.7800, 0.7750, 0.7690

Resistance: 0.7900, 0.7970,  0.8000