USDX (USD Index)

A bullish engulfing pattern formed on the U.S dollar index chart. If the pattern confirmed by a breakout above the high then we will see U.S dollar index launch upward and target 99.40 – 100.00 resistance. Currently, no confirmation yet. Traders and investors are waiting for ECB rate-announcement today.

News to watch

07.45 AM ECB Main Refinancing Rate

08.30 AM ECB Press Conference

U.S CPI m/m, forecast 0.1%, Core CPI m/m forecast 0.2%

For full outlook for this week, you can follow Forex Outlook For The Week 9-13 September 2019

EUR/USD

Today is the decision time for EUR/USD as ECB will announce interest-rate and future policy. The pair pushed lower yesterday and closed near 1.1000. It might stick near the support level until the time of announcement. Traders will continue to monitor the pair movement near 1.1000 and the trendline for now.

today critical levels to watch:

Support: 1.1000, 1.0900

Resistance: 1.1120

GBP/USD

No change to the outlook of GBP/USD. The pair traded inside the bearish channel and expected to continue inside it. Traders could prepare for short positions near the top of the channel.

Today Critical level to watch:

Support: 1.2300, 1.2100, 1.2000

Resistance: 1.2400

USD/JPY

USD/JPY continue its upward movement for the sixth days and aim for seventh days bullish close. No reason to switch to the short side yet at least until the pair reach 109.00 or form major bearish reversal pattern. Long positions near 107.40 could become an option if USD/JPY corrected lower.

Today critical levels to watch:

Support: 107.40, 107.00

Resistance: 109.00

AUD/USD

AUD/USD extends its bullish close and not far from the top of the channel. The pair expected to test the top of the channel and rejected from it. If rejection happens then traders could enter short positions with the assumption that AUD/USD long-term bearish trend will continue. Stop order above 0.6950 or 0.7000 could be considered.

Today critical levels to watch:

Support: 0.6800, 0.6700

Resistance: 0.6900