USDX (USD Index)
Major bullish candlestick closed Monday trading session at the high near previous week high. The bullish close followed through by the bull today by printing higher high. However, the bullish advantage could not hold and immediately sold by the bear. Currently, the index looks will make pullback and trade between 95.50 – 96.10.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 22 – 26 October 2018
Technical Analysis
EUR/USD
EUR/USD closed below 1.1500 in the previous day and currently making attempt to recover from the losses. The pair slightly higher and hovering 10-20 pips below 1.1500. Will the bull push EUR/USD back above 1.1500 this week? alternatively, will the bear continue to hold the control and lead EUR/USD down to 1.1300 – 1.1360 area?
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
The closure below 1.3000 might be critical for GBP/USD bear and it does not leave room for the bull today. All attempt to move the pair above 1.3000 received selling reaction. Initially, GBP/USD managed to climb above 1.3000 but it does not last long. Currently, the pair traded below 1.3000 and looks will make the second day close below 1.3000.
Today critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3100, 1.3125
USD/JPY
We might have a bearish pattern on the USD/JPY daily chart, the bearish rising wedge. No breakout yet and the pattern still need confirmation. At the current time, the pair traded back inside 112.00 – 112.50 range and might continue its ranging movement with a bearish bias.
Today critical level to watch:
Support: 112.00, 111.00, 110.50
Resistance: 112.50, 113.00, 113.20
AUD/USD
AUD/USD has a situation we call “bounce or dive”. The pair print new low below previous week low but it recovers most of the daily loss. Will the pair close as bullish candlestick and bounce toward 0.7160 or will it close lower and ready to print lower low below 0.7040?
Today critical level to watch:
Support: 0.7040, 0.7000
Resistance: 0.7100, 0.7160, 0.7300