USDX (USD Index)

The bull keeps raging in U.S dollar index and pushes the level above the yellow box area. Sentiment on the interest-rate boosted the index even though President Trump keeps mentioning his disagreement on The Fed rate-hike policy. If the Fed raises rate this month, then we could expect more strength and retest of 96.70

News to watch

08.15 AM UK Inflation Report Hearings

10.00 AM U.S ISM Manufacturing PMI, forecast reading of 57.6

For full outlook for this week, you can follow Forex Outlook For The Week 3 – 7 September 2018

Technical Analysis

EUR/USD

EUR/USD being sold by traders and ready to test previous week low. We think the pair will continue its downward movement and test bottom of the blue box before any bounce possible. However, today closing level is the factor to watch. A close above the blue box will cancel the bearish view and lead to a bounce. On the other hand, a close inside the blue box will open the path to the box bottom.

Today critical level to watch:

Support: 1.1500, 1.1360

Resistance: 1.1580, 1.1600, 1.1650, 1.1710

GBP/USD

GBP/USD could not weather the bearish pressure yet and the pair falls to a level near 1.2800 today. Nothing to do yet and traders will continue to watch sideline until reaction shown. Will we see a bounce or continuation lower?

Today critical level to watch:

Support: 1.2800, 1.2700, 1.2625

Resistance: 1.3000, 1.3100

USD/JPY

There is a mini bounce in USD/JPY today, however, it is not a strong bounce and could reverse before the market close. As long as there is no close above previous week high or 112.00, USD/JPY might continue stick near 111.00.

Today critical level to watch:

Support: 111.00, 110.50, 110.00

Resistance: 112.00, 112.50

AUD/USD

AUD/USD closed on the bullish side Yesterday. However, the bull could not maintain upside pressure and giving ground to the bear today. Will we see breakout below 0.7160 this week?

Today critical level to watch:

Support: 0.7160

Resistance: 0.7300, 0.7330