USDINDEX Daily Forecast Nov 02 2018

Forex -US 65985

USDINDEX: Sees Corrective Pullback Threats!

As long as 96.95 resistance holds on a daily closing basis, the U.S dollar index remains in a pullback mode. But corrective pullback below 96.95 should be contained well by 95.70/95.18 levels where rebound is likely. However; below 95.18 will reverse risk to the downside to 94.58 levels, further down, support comes at 94.14 ahead of 93.85 levels.

On the upside, immediate resistance comes at  96.50 level. A break will recapture 96.95. Above that level will restore the upside momentum and aim 97.30 level, further upside, resistance comes at 97.70 level.

Conclusion: The U.S dollar index still faces pullback threats below 96.95 level.

Support: 96.05, 95.70, 95.18, 94.58, 94.15

Resistance: 96.50, 96.95, 97.30, 97.70, 98.20

blankKey data/events which may affect U.S dollar index today:

1. The U.S will report on Nonfarm Payrolls for Oct at 12:30 GMT. The forecast is to jump to 191K, from 134K a month earlier. Above forecast will support the U.S dollar.

2. The U.S will also report on the Unemployment Rate for Oct at 12:30 GMT The forecast is to inch up to 3.8%, from 3.7% in the preceding month. Below-forecast will support the U.S dollar. Above forecast us negative for the USD.

How both reports (Nonfarm Payrolls & Unemployment Rate) will affect the market?!

Scenario # 1: If both reports are positive. The  USDINDEX will recover to 96.50, If fails to hold, a further upside to 96.95 is likely.

Scenario # 2: If both reports are negative, The USDINDEX will continue correcting lower to 95.70 level, a cut could be seen to 95.18 level.

Scenario # 3: One report is positive and the other is negative. Sideways move is likely within 95.70/96.50 range.