USDX (USD Index)
U.S dollar index on the path higher after it breakout from 93.00 – 94.00 range. The index expected to test 95.50 – 96.30 area this week. However, there is a possibility the index will reverse its direction downward before further upside, testing the 94.00 broken resistance. Traders could position themselves for a long position in U.S dollar pair when the index reaches 94.00.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 30 – 3 Nov 2017
Technical Analysis
EUR/USD
EUR/USD reached the first checkpoint of 1.1500 – 1.1580 area. The pair bounced after it touched 1.1580 and enter consolidation period. It is possible the consolidation will bounce toward 1.1710 to test it and continue lower. Traders could look for short position when the pair reach this level.
Today critical level to watch:
Support: 1.1580, 1.1500, 1.1360
Resistance: 1.1650, 1.1710, 1.1820
GBP/USD
In the previous week, a test of 1.3000 and daily SMA 200 look obvious. However, this week GBP/USD bull shake out that possibility as the pair gain sharply and move near 1.3250. The pair back in neutral state and has more bullish odds. If the bull could bring GBP/USD above 1.3250, it will cancel the bearish view.
Today critical level to watch:
Support: 1.3100, 1.3000
Resistance: 1.3250, 1.3300, 1.3342
USD/JPY
USD/JPY completed our target projection as it touch level near 114.50. The pair currently down on profit taking and the selling accelerated. It is expected to stop the decline near 112.5o or at current level 113.00. The breakout below 112.50 will turn the trend back into bearish. Tomorrow, BOJ will meet and decide interest rate which will become the trigger for next movement.
Today critical level to watch:
Support: 112.50, 112.00, 111.60
Resistance: 113.20, 114.50, 115.00
AUD/USD
AUD/USD has lost ground for a bounce as the pair move below daily SMA 200. The pair is extremely oversold from previous week slide as U.S dollar strengthened. This week, U.S dollar looks will be corrected before further upside. AUD/USD has the probability to move above daily SMA 200 and test 0.7750 where traders could look for a short position. However, the pair also might just move sideways below daily SMA 200.
Today critical level to watch:
Support: 0.7550, 0.7500
Resistance: 0.7690, 0.7750, 0.7800, 0.7875