USDX (USD Index)
Another higher high achieved by the bull in U.S dollar index today. The index climb above 96.70 the entire day before turning lower in U.S session. Currently, the index traded below its opening level and could close the day as bearish pin bar.
The market might be anticipating next week news from the UK on Brexit and interest-rate. If the correction continues, the U.S dollar index might test 96.10 before moving to the next direction.
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 is the counterpart of the U.S dollar index. While the index formed a bearish pin bar, the pair might produce a bullish pin bar pattern. Nevertheless, 1.1300 – 1.1360 reached today and there is a bullish reaction. Traders could place a long position and target 1.1500 – 1.1580.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1500, 1.1580, 1.1600, 1.1710
GBP/USD
GBP/USD completed the downward movement and reach 1.2800 as we expected. The pair currently trying to hold out above the support level and avoid weekly close below it. We think GBP/USD will continue to stay inside 1.2800 – 1.3000 range until next week BOE interest-rate decision. Long position from the support level could be considered.
Today critical level to watch:
Support: 1.2800
Resistance: 1.3000, 1.3050, 1.3100, 1.3125
USD/JPY
The pair broke below 112.00 – 112.50 area and drop sharply today. It is resuming the bearish trend and the downward movement could reach 111.00 next week. Shorting when there is upward correction is suggested, on the other hand, a long position is not suggested.
Today critical level to watch:
Support: 111.00, 110.50
Resistance: 112.00, 112.50, 113.00, 113.20
AUD/USD
A lower low is printed on AUD/USD today after the pair spike downward. It is a bearish sign, unfortunately, it could be a fake breakout as the pair currently traded back to its opening level. AUD/USD opened the possibility for further upward correction next week with 0.7160 as the target. However, a lower low on the chart also a warning for further bearish movement.
Today critical level to watch:
Support: 0.7040, 0.7000
Resistance: 0.7100, 0.7160, 0.7300