USDX (USD Index)

The index continues under bearish pressure and falls below 98.25 today. It seems the index will close the day near its daily low. Without any change in the direction, the index might continue lower and test 97.50. We expect a major bounce will happen at 97.50 or 98.25. At the current time, it is better to wait for further clues.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 14 – 18 October 2019

EUR/USD

EUR/USD bounced from 1.1000 and formed a bullish pin bar pattern. The pattern confirmed by upside breakout today. Under the current situation, it seems EUR/USD will continue upward and test 1.1120. Short positions near the resistance level when there is bearish reaction might be the option, traders could take.

today critical levels to watch:

Support: 1.1000, 1.0900, 1.0800

Resistance: 1.1120

GBP/USD

GBP/USD breakout above 1.2800 resistance and might continue upward. The current bullish movement might continue as Brexit continue positively. Despite the current bullish movement in the pair, we might see wild swing nearing the Brexit deadline. Traders who want to speculate might limit the positions to minimum size.

Today Critical level to watch:

Support: 1.2800, 1.2625, 1.2600, 1.2500

Resistance: 1.3000

USD/JPY

USD/JPY reversed before it could reach 109.00 or the daily SMA 200. The bearish reaction is not strong which might indicate further bullish pressure. Wait until the pair reach 109.00 & SMA 200 or produce major bearish reversal pattern to enter short positions.

Today critical levels to watch:

Support: 107.40, 107.00, 106.70

Resistance: 109.00

AUD/USD

We are expecting a bearish continuation in AUD/USD but with or without a resistance test. Today, the pair falls below 0.6750 but managed to recover all of its losses. Currently, AUD/USD trading above 0.6750 and set to close the day at the bullish side. We might see AUD/USD trade higher toward 0.6820.

Today critical levels to watch:

Support: 0.6700

Resistance: 0.6800, 0.6900