FX Indices: paused and poised! By Mary McNamara

The FX indices have paused at their respective next major S/R levels with NFP failing to help trigger any breakout move. Jobs data was weaker than expected but wages improved since the last report such that the US$ index closed the week with an indecision-style Doji candle. Both Indices look poised for potential follow-through activity though so keep an eye on the looming S/R zones on each.

USDX weekly: The Bear Flag may still evolve here but the recent low, near 91, needs to be broken to avoid any ‘Double Bottom’ reversal move:

EURX weekly: The Bull Flag may still evolve here but the recent high, near 108.7, needs to be broken to avoid any ‘Double Top’ reversal move:

FX Index Alignment: the FX Indices remain aligned for ‘risk on‘ but watch for any shift here if the Double Top /Bottom situations evolve.

Calendar: there isn’t a lot of high impact data but watch for US CPI, PPI and Retail Sales data:

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