FX Indices: both lower for the week

Both FX Indices have closed with bearish weekly candles with mixed US economic data and Trump comments about the US$ being too strong helping to undermine the US$ index. However, the USDX has managed to close the week above strong support setting up a key level to monitor during next week’s trading.

USDX weekly: the weekly candle was bearish but has managed to hold above the key 100 level, albeit only just, and this will be the level to watch next week for any make or break activity:

USDX daily: Friday’s candle was bearish but not as large as one might have expected given the miss with US CPI and Retail Sales. Maybe the lighter trading helped keep damage to a minimum here?

USDX daily Cloud: price did not manage to break above the Cloud and note how a recent trend line and the 102 level are above this resistance; all being levels to watch in coming sessions:

EURX weekly: there has been a bearish weekly candle here too and price is still below the key 100 level:

USD and EUR Economic data: there isn’t any high impact EUR data next week but there is a lot of second tier PMI data on Friday that could impact the FX Indices. There are 6 items of high impact data for the US though as per below:

Summary: The weak US CPI and Retail Sales data, combined with Trumps comments about the US$ being too strong, could put pressure on the currency in coming session so watch the following levels for clues about the next directional move:

  • Support: The support levels to monitor are the psychological 100 followed by the triangle support trend line.
  • Resistance: The resistance levels to monitor include the daily Ichimoku Cloud, the triangle bear trend line and 102 level.

MMM  By Mary McNamara

Source: tradecharting.com

 

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