There’s lot of talk about future US rate hikes yet the US$ remains below major resistance levels and I’m wondering what type of data or Fed talk is needed to get the the index over these levels? Both FX Indices printed bullish coloured indecision-style ‘Spinning Top‘ candles last week and both are trading under major weekly resistance so it’s a ‘draw’ for them at the moment.
USDX weekly: closed with a bullish coloured indecision-style ‘Spinning Top’ candle. I believe we won’t see an end to currency market choppiness until there is a decisive breakout on the US$ index. Keep watch of the following levels next week:
- the bottom of the weekly Ichimoku Cloud as resistance.
- the bottom trend line of the symmetrical wedge pattern.
- the 50% Fibonacci level down near 88.
- the 61.8% Fibonacci level down near 85.
EURX weekly: this index closed with a bullish coloured indecision-style ‘Spinning Top’ candle too and still under a major bear trend line so watch for any make or break at this resistance:
Calendar: there are a few ECB Draghi speeches and a Fed Chair Yellen speech to navigate next week: