USDX (USD Index)
It is the last day of the week and the U.S dollar index firmly higher at the weekly high. No change in the direction yet and it seems the index will close the week near previous week high. Bullish close near the high will prepare a smooth base for next week bullish movement. At the current time, traders might want to avoid placing positions as there is no reaction near the high yet.
News to watch
12.10 PM UK BOE Gov Carney Speaks
For full outlook for this week, you can follow Forex Outlook For The Week 15 – 19 October 2018
Technical Analysis
EUR/USD
Surprise, that is what happens in EUR/USD after the previous week bullish movement. The pair losing the grip on 1.1580 and continue lower below 1.1500. Soon we might see lower low printed on the daily chart and the pair will continue its bearish trend toward 1.1300 – 1.1360. Shorting on a retest of 1.1500 is the ideal scenario traders could take.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
The only question to ask when GBP/USD hit bottom of yellow box range is, “Will the pair bounce and continue its ranging movement?” Friday is the key for that question, a close below 1.3000 means the pair might continue lower in the coming week and enter new bearish trend.
Today critical level to watch:
Support: 1.3000
Resistance: 1.3050, 1.3100, 1.3125
USD/JPY
A breakout above 112.50 could not help USD/JPY advance to 113.20. The pair closed back inside 112.00 – 112.50 area in the previous day and showing lack of direction. It is expected to continue the ranging movement between 112.00 – 112.50 though with a bullish bias. At the current time, traders could use the range to take either long or short position.
Today critical level to watch:
Support: 112.00, 111.00, 110.50
Resistance: 112.50, 113.00, 113.20
AUD/USD
The situation is not the best situation for the bull after another rejection from 0.7160 resistance. AUD/USD outlook stays bearish and could anytime turn to strong bearish. Shorting near 0.7160 is the options traders could take at the moment. Long position only possible when there is a breakout above 0.7160 followed by bullish pattern when retest happen.
Today critical level to watch:
Support: 0.7100, 0.7000
Resistance: 0.7160, 0.7300