USDX (USD Index)

The upward movement of U.S dollar index continues and break above 93.00 resistance. The break above resistance followed by a decline on the second day, but manage to close above the resistance turned support. If this week, the index closed above 93.00, it is possible for U.S dollar index to move further higher. The key for the bullish move is 94.00 where previous lower high present.

News to watch

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For full outlook for this week, you can follow Forex Outlook For The Week 25 – 29 Sep 2017

Technical Analysis

EUR/USD

EUR/USD broke lower outside of the yellow range and confirmed short-term weakness. The pair currently challenging the support turned resistance and might fail. The close below yellow range might lead the pair further lower toward 1.1500.

Today critical level to watch:

Support: 1.1820, 1.1710

Resistance: 1.1900, 1.1925, 1.2000, 1.2070

GBP/USD

Similar to other contra USD pairs, GBP/USD is on the path lower. The pair fell below 1.3450 and might continue toward the black trend line. If the support level were broken, GBP/USD bear would test 1.3250.

Today critical level to watch:

Support: 1.3450, 1.3400, 1.3300

Resistance: 1.3500, 1.3600, 1.3700, 1.3835, 1.4000

USD/JPY

USD/JPY bull is in control, but it stays below 112.50 resistance level. Recent move above the daily SMA 200 is crucial and indicate more strength in the future. If the pair fall, it will find SMA 200 as a support level. Traders could stay optimistic as U.S dollar index start showing strength, the upside target is 114.50.

Today critical level to watch:

Support: 112.00, 111.60, 111.00, 110.50

Resistance: 112.50

AUD/USD

Bearish reversal from 0.8000 brought AUD/USD down to test 0.7800. There is temporary support where the pair might form range before either bounce or break lower. We favor a break lower and a move toward 0.7690 – 0.7750 area before a real bounce.

Today critical level to watch:

Support: 0.7800, 0.7750, 0.7690

Resistance: 0.7875, 0.7900, 0.7970, 0.8000, 0.8100