USDX (USD Index)
U.S dollar index has yet to see more bearish pressure on the daily chart, and it looks trying to push the level back inside 92.00 – 93.00. The Recent string of data from U.S is not encouraging as Job data missed and today we see softer PPI. The inability of the bull to claim a level inside 92.00 – 93.00 this week will open more weakness.
News to watch
08.30 AM U.S PPI increase 0.2% compared to 0.3% expectation.
10.30 AM U.S Crude Oil Inventories, estimated an increase of 4.1 million barrels.
For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 Sep 2017
Technical Analysis
EUR/USD
Is the bull finally losing steam and ready for a downward correction? Today we see a mild rejection from the blue trend line as the price continue lower in the U.S session. Under current momentum, it is possible for the bear to close EUR/USD below 1.1925 and start a short-term correction.
Today critical level to watch:
Support: 1.1925, 1.1900, 1.1820
Resistance: 1.2000, 1.2068
GBP/USD
GBP/USD retreat after a move higher than the previous day high spell question to the market. Will GBP/USD closed below 1.3250 and the lower part of the bullish channel? If the pair closed below 1.3250, it is possible the pair will continue toward 1.3000.
Today critical level to watch:
Support: 1.3250, 1.3200, 1.3100
Resistance: 1.3300
USD/JPY
USD/JPY near the end of bounce target and traders could expect profit taking near the resistance level. The question is, where the pair will head to? Is it going to break the resistance and continue upward? Alternatively, is it going to reverse current bullish sentiment and start another test at 109.00?
Today critical level to watch:
Support: 109.00, 108.80, 108.10, 107.40, 107.00
Resistance: 110.50
AUD/USD
It is the first day of 0.8000 test, and AUD/USD bull successfully endure the selling pressure. The market seemed eager to push the pair down and made the second test today. Judging the momentum of the downward movement, it looks like the bear might win the battle and push AUD/USD back below 0.8000. There is no conclusion yet, and the moment before London close is crucial for USD/JPY.
Today critical level to watch:
Support: 0.8000, 0.7970, 0.7900
Resistance: 0.8100