Yesterday I noted a triangle on the US$ daily chart and this pattern continues to constrain price action. This has kept some of the USD-based currency pairs choppy but some of the exotics have made significant moves. My TC system currently suggests that 4 hr TC signals are less reliable and that 30 min signals during the European and US session offer better trading opportunity. Yesterday was another classic example of this!
NB: I’ve made one trip to the airport today and have another this afternoon. We have family here for the next week or so and so further updates during this period will be brief and few.
USDX daily: I’m still waiting for a clear sign of continuation or pullback with the index. Price remains within the triangle so it may be best to wait for any momentum-based triangle breakout before trading either the index or many of the USD-based pairs. The Presidential Inauguration is just 10 days away now (Jan 21st) and I’m wondering if we might see some choppy action until after this ceremony?
TC Signals from yesterday:
During yesterday’s Asian session I received a 4hr TC signal on the EUR/USD that evolved with a triangle breakout but, as my system had warned me, this was a low probability trade for this time period and it duly failed. Two other signals during the European/US session on the 30 min charts of the USD/TRY and USD/MXN were bolters though!
EUR/USD 4hr: a failed 4hr TC signal from yesterday’s Asian session:
USD/TRY 30 min: choppy but a most productive 30 min TC signal:
USD/MXN 30 min: a hugely productive 30 min TC signal:
E/J 4hr: still in a Flag but watch trend lines for any momentum-based breakout:
A/U 4hr: this Flag breakout is up just 70 pips but still hovering under the recent 61.8% fib and the 0.74 level.
A/J 4hr: still in a triangle but watch trend lines for any momentum-based breakout:
GBP/USD daily: in a daily-chart triangle so watch trend lines for any momentum-based breakout; especially with today’s GBP Manufacturing Production data.
U/J 4hr: choppy and I’m having trouble reading this pair here for now.
G/J 4hr: this trend line break has given 220 pips but price action is chopping sideways for now.
USD/CAD 4hr: watch the bottom trend line here as this is the long-term channel trend line and any breakdown might support a move to the key 1.30 level:
Gold 4hr: the Flag breakout here is up 150 pips now: