USDX (USD Index)
U.S dollar index on the path upward and test 94.00 resistance today. The test yield in a rejection which brings the index lower, but there is a possibility the rejection only temporary. Traders will continue to monitor the index between 93.00 – 94.00 until a significant breakout pattern formed.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 2 – 6 Oct 2017
Technical Analysis
EUR/USD
EUR/USD drift lower below 1.1710 today but manage to recover most of the losses and shift to the positive side. Although it looks like a bounce, there is no confirmation yet and EUR/USD expected to move between 1.1710 – 1.1820. We still favor a break lower without a move above 1.1820. However, traders who do not hold position might want to stay clear of the pair until Non-farm employment data.
Today critical level to watch:
Support: 1.1710
Resistance: 1.1820, 1.1900, 1.1925, 1.2000
GBP/USD
GBP/USD on the path lower after worse than expected construction PMI data and there is no reversal yet. The pair is currently testing 1.3250 and stick near it. Traders could look for a small long position at the support level 1.3250 with a small stop. However, if this support level gives way for the bear, GBP/USD might weakness to 1.3000.
Today critical level to watch:
Support: 1.3250, 1.3000
Resistance: 1.3300, 1.3342, 1.3400, 1.3450, 1.3500
USD/JPY
Traders might be contemplating about the situation of USD/JPY. The pair has claimed a level above 112.50 but has yet to prove the upward momentum survivable. USD/JPY has multiple highs formed at 113.20, is it a sign the pair will reverse soon? The good news for the bull is, “There is no lower low” seen on the chart. Instead, we could see the low gets higher.
If the trend continues, we will soon see a blast upside above the multiple highs. However, traders might want to consider Non-farm employment news also which could influence the pair movement.
Today critical level to watch:
Support: 112.50, 112.00, 111.60, 111.00, 110.50
Resistance: 113.00, 113.20, 114.00
AUD/USD
AUD/USD keep challenging the low at 0.7800 and slowly push the low lower. From fundamental side, it is not good news for the bull as RBA concerned on AUD higher rates. The higher rate hinders growth and employment. Technically, if the price shows no bounce, traders could see AUD/USD break lower.
Today critical level to watch:
Support: 0.7800, 0.7750, 0.7690
Resistance: 0.7875, 0.7900, 0.7970, 0.8000, 0.8100