FX Indices: one has to give way eventually! by Mary McNamara

The USDX and EURX are both still ranging within their triangle patterns but, as they each move closer towards their respective apex, one will have to give way sooner or later. The Yellen testimony has done little to help define new USD sentiment and direction and US stocks ended mixed on this confusion as well. Although, the DJIA has printed a new high and the NASDAQ rallied up to just under the psychological 5,000 barrier.

USDX 4hr: still range bound but, maybe, the heavier of the two:


EURX 4hr: still range bound but getting very squeezed:


TC Signals: risk appetite seems to be on the increase according to the kinds of TC signals that are creeping through. This may be on the slightly heavier look of the USDX compared to the EURX.

AUD: these two AUD signals came through yesterday BUT, with the indices still range bound, I’m cautious. Watch for red flag AUD data later this morning:

A/U: held in check by the 4hr 200 EMA for the time being ahead of AUD data:


A/J: similar story here too:


Kiwi: a new TC signal triggered off an overnight candle BUT price, whilst above the 4hr Cloud, is just below the daily Cloud although this Cloud is thin and may not offer too much resistance.

Kiwi 4hr: new TC signal overnight but hasn’t moved too far yet:


Kiwi daily Cloud: watch for any resistance from the daily Cloud:


Other FX:

Cable: this is the one that really has my interest though and I am long here. Price action has now made a daily close above the 1.55 and daily Cloud levels that I have been emphasising to watch:

G/U 4hr:


G/U daily Cloud: a daily close above the 1.55 and Cloud is bullish….IMHO that is!


E/U: still range bound:


E/J: here too:


U/J: still above 118.5 but below the daily triangle trend line:


GBP/JPY: has made a daily triangle breakout:


Loonie: this is ranging within a triangle of sorts and I’m wondering if this is the start of the choppy action to help form up the monthly chart’s ‘Handle’ of my Cup ‘n’ Handle?

USD/CAD 4hr: ranging:


USD/CAD monthly Cloud: showing a possible Cup ‘n’ Handle outline:


Silver and Gold: both of these are holding above support levels for now but I don’t think we’ll see a definitive move on either until there is a breakout on the USDX, either up or down:

Silver 4hr: holding above $16, a recent support trend line and the monthly triangle trend line:


Gold: holding above $1,200 and the 61.8% fib of the recent bull move:


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