USDX (USD Index)
U.S dollar index resumes bearish movement in the previous day trading session. The index closed near 92.00 support level and waiting for clarity on the next movement. U.S CPI data and unemployment claims data were better than expected while North Korea fires another missile above Japan. The missile test news shook the equity market and invited uncertainties into the market.
The drop of U.S dollar index could be attributed to Korea nuclear test as U.S stand as the rogue country counterpart. The index expected to maintain its position above 92.00 by the end of the week. Otherwise, a continuation downward for new yearly low is on the card.
News to watch
08.30 AM U.S Core Retail Sales estimated an increase of 0.5% monthly.
08.30 AM U.S Retail Sales, expected to increase 0.1% monthly.
For full outlook for this week, you can follow Forex Outlook For The Week 11 – 15 Sep 2017
Technical Analysis
EUR/USD
EUR/USD found footing near the 1.1820 support level and closed near the 1.1925 resistance level. The pair has not moved above the resistance level yet today, but it might do so in the later session. Traders could look for the long position above the resistance level if EUR/USD move with strong bullish momentum. The close above 1.1925 will help EUR/USD to move toward 1.2070.
Today critical level to watch:
Support: 1.1900, 1.1820, 1.1710
Resistance: 1.1925, 1.2000, 1.2068
GBP/USD
GBP/USD made a fakeout break of bearish cloud cover, and the price never confirmed the pattern. Instead, the bull pushed the price higher and closed as a bullish engulfing pattern. The current price of 1.3427 is not far from 1.3500 round number which is a big reason traders should avoid taking a short position.
Today critical level to watch:
Support: 1.3400, 1.3300, 1.3250, 1.3200, 1.3100
Resistance: 1.3500
USD/JPY
USD/JPY experienced rejection from the bearish trend line as expected and the price move lower below the bearish candle. However, it looks like the bull manages to contain all selling and bring the pair above previous day closing level. The pair is currently testing the bearish trend line and a close above it will trigger more buying.
Today critical level to watch:
Support: 110.50, 109.00, 108.80
Resistance: 111.00
AUD/USD
AUD/USD closed near 0.8000 prolong neutral situation, and there is no indication for buying or selling yet. Traders will continue monitor until a momentum candlestick emerge.
Today critical level to watch:
Support: 0.8000, 0.7970, 0.7900
Resistance: 0.8100