USDX (USD Index)
After four consecutive bearish closes, the U.S dollar index finally makes a bullish attempt today. The index bullish attempt is under test and it needs to close above previous Friday high to confirm the upward movement. Traders will continue to wait for bullish confirmation. If the index moves upward then it will test 99.40 – 100.00 area.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 7 – 11 October 2019
EUR/USD
EUR/USD could not close above 1.1000 resistance in the previous week and today we have first bearish reaction. The pair bearish reaction could be temporary. As long as it maintains the close above previous Friday low then the pair set up for the further bullish attempt. Short positions could be rewarding and traders could hold the positions when the pair closes below Friday low.
today critical levels to watch:
Support: 1.0900, 1.0800
Resistance: 1.1000, 1.1120
GBP/USD
GBP/USD managed to close higher in the previous week but it is not a strong close. The pair opened lower today and might continue its bearish trend inside the bearish channel. No major confirmation yet in the pair and traders will observe the pair close by the end of the day.
Today Critical level to watch:
Support: 1.2200, 1.2000
Resistance: 1.2300, 1.2400, 1.2500, 1.2600
USD/JPY
USD/JPY closed inside 106.70 – 107.00 range last week which means the pair will consolidate inside the range for a while. We have a bullish reaction from the bottom of the range today. Soon the pair might reach the top of the range and produce a bearish reaction. Traders could trade the range with a bearish bias for now.
Today critical levels to watch:
Support: 106.70
Resistance: 107.00, 107.40, 109.00
AUD/USD
AUD/USD climbed inside the blue box area last week. The pair set to continue its upward movement this week. However, it is currently under pressure and slips below the blue box area. Will the pair start moving upward and close inside the blue box area again? Alternatively, will it start a new bearish leg?
Today critical levels to watch:
Support: 0.6700
Resistance: 0.6800, 0.6900