USDX (USD Index)

The bullish movement of U.S dollar index breach 95.50 resistance and launch higher toward the next resistance at 96.70. We think the upside is open for the index and any correction will be bought as long as the index stays above 95.50. Under the current situation, traders better avoid short position.

News to watch

For full outlook for this week, you can follow Forex Outlook For The Week 1 – 5 October 2018

Technical Analysis

EUR/USD

The path of EUR/USD is the to downside, following the breakout below 1.1500 and there is nothing to stop it. EUR/USD has downward target at 1.1300 – 1.1360. Shorting near 1.1500 might be one of the best option to take.

Today critical level to watch:

Support: 1.1360, 1.1300

Resistance: 1.1500, 1.1580, 1.1600

GBP/USD

GBP/USD made another close below 1.3000 and continue further lower as expected. No change to our projection which saw GBP/USD down to the trendline or 1.2800. the At current time, traders could use 1.3000 as a level to place short positions.

Today critical level to watch:

Support: 1.2800

Resistance: 1.3000, 1.3100,1.3125

USD/JPY

USD/JPY touched down at 114.50 resistance and bringing us to switch to long-term chart. On the weekly chart, we could see USD/JPY traded near resistance 114.50 – 115.00 and under risk of rejection from the level. There is no apparent rejection yet from the area and traders might want to avoid short position yet as the bullish momentum still strong. It is better to wait until weekly close to determine if the bull still has fuel to continue the uptrend.

Today critical level to watch:

Support: 114.00, 113.20, 113.00

Resistance: 114.50, 115.00

AUD/USD

AUD/USD resume the bearish trend by breaking support 0.7160 and print new lower low on the daily chart. There is nothing to stop the bear yet and it is better to stay sideline for now.

Today critical level to watch:

Support: 0.7000

Resistance: 0.7100, 0.7160, 0.7300, 0.7330