USDX (USD Index)
The bull decided to give more ground for the bear as U.S dollar index slide below 94.30 and 94.00 support level. The breakout lower bring U.S dollar index to trade between 93.00 – 94.00 area. Today, the bear needs to maintain the bearish momentum and push the index further lower to confirm the breakout. No major news release to watch today which might lead to no change in the current direction.
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 punched through 1.1710 resistance and bringing the pair to new trading range between 1.1710 – 1.1820. There is little room for the bull to bring the pair higher especially when The Fed interest-rate decision loom. We might see the pair traded sideways near the resistance level.
Today critical level to watch:
Support: 1.1710, 1.1650, 1.1600
Resistance: 1.1820
GBP/USD
GBP/USD make a touchdown on the daily SMA 200 or a level near 1.3300 – 1.3330 as we predicted. The pair has completed the bullish leg and could move to any direction now. The Fed interest-rate decision next week might become the trigger for next movement either a breakout or rejection from SMA 200.
Today critical level to watch:
Support: 1.3250, 1.3125, 1.3100, 1.3000
Resistance: 1.3300, 1.3330
USD/JPY
The pair closed near 112.50 resistance level and the bull continues to bring the pair higher today. There is no weakness seen yet and USD/JPY could extend the uptrend toward 113.20 before turning down. Traders will watch the pair reaction near the resistance level before placing any position.
Today critical level to watch:
Support: 112.50, 112.00, 111.00, 110.50
Resistance: 113.00, 113.20
AUD/USD
AUD/USD has no trouble to reach 0.7300 – 0.7330 after the bounce from 0.7160. However, it could be the end of the bullish leg when the pair printed a strong bearish reversal pattern. There is no clue yet whether rejection or breakout will happen. Traders could protect long position by moving stop order higher. Traders who are looking for the short position might want to look at 0.7330 at the moment.
Today critical level to watch:
Support: 0.7160, 0.7100, 0.7000
Resistance: 0.7300, 0.7330