USDX (USD Index)

U.S dollar index closed yesterday’s trading session bullish. It opens the chance for the index to continue the bullish movement. However, there is no bullish follow-through yet. It seems traders are adopting the “wait and see” stance before next week’s FOMC interest-rate announcement.

Traders might want to be careful as another rate-cut means the index will continue the bearish movement.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 21 – 25 October 2019

EUR/USD

EUR/USD closed below 1.1120 with a bearish engulfing pattern. The pattern has not confirmed yet and as long as there is no close below the pattern low, EUR/USD still has a chance to move upward. If EUR/USD could close inside 1.1120 – 1.1185 next week then the pair expected to continue its bullish trend.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120, 1.1185

GBP/USD

We expect further consolidation in GBP/USD. The pair currently testing 1.2800 support level and traders could look for long positions. On the upside, 1.3000 will become the upward target when a bounce happens. If the pair continues lower then daily SMA 200 will become the place to look for long positions.

Today Critical level to watch:

Support: 1.2800, 1.2625, 1.2600, 1.2500

Resistance: 1.3000

USD/JPY

USD/JPY continues its lackluster movement and might have not much change until the end of the week. No change to the outlook and traders better avoid the pair at the moment.

Today critical levels to watch:

Support: 107.40, 107.00, 106.70

Resistance: 109.00

AUD/USD

AUD/USD closed near 0.6820 and the top of the channel. It is a critical moment for the pair. Will the pair bounce from the support levels? Alternatively, will it bounce and continue the bullish movement?

Traders will observe the pair closing level this week and enter positions base on the market reactions.

Today critical levels to watch:

Support: 0.6800, 0.6750, 0.6700

Resistance: 0.6900