USDX (USD Index)
The U.S dollar index finished the week near 95.00 resistance level and indicate bounce from the support 94.30. This week, the index takes a bearish start but still significantly near 95.00. Market focus will be shifted outside of U.S as major data released around the world. This week, we expect the index to maintain the range inside the yellow box area.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 17 – 21 September 2018
Technical Analysis
EUR/USD
EUR/USD rejected from the 1.1710 resistance before the weekly close and provide us with a bearish outlook this week. The pair might weaken to test 1.1500 – 1.1580 area again. However, the upcoming U.S interest-rate decision next week might bring the pair under a sideways trend. We expect 1.1500 – 1.1710 will continue holding out until next week.
Today critical level to watch:
Support: 1.1650, 1.1600, 1.1580, 1.1500
Resistance: 1.1710
GBP/USD
GBP/USD broke out above 1.3000 and enter the range 1.3050 – 1.3250. The pair could progress higher to the daily SMA 200 and test it before turning lower. Traders could use 1.3000 – 1.3050 as a base area to look for a long position. On the other hand, 1.3250 – 1.3300 is the area to look for a short position.
Today critical level to watch:
Support: 1.3000, 1.2800
Resistance: 1.3100, 1.3125, 1.3250
USD/JPY
USD/JPY stick near 112.00 after the resistance touched and showing no clue for next direction yet. The pair could extend its uptrend toward 112.50 or 113.20 before turning lower. However, it is better for traders to avoid long position at the current level as it is a long position toward resistance level.
Today critical level to watch:
Support: 111.00, 110.50, 110.00
Resistance: 112.00, 112.50
AUD/USD
AUD/USD closed the week near 0.7160 and opened it by moving higher. We think the pair has turned bullish as it manages to return above 0.7160. Traders could use 0.7160 as the level to place a long position with the target at 0.7300 – 0.7330.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7000
Resistance: 0.7300, 0.7330