The US$ has failed to hold the week out above 102 resistance despite Fed Chair Yellen’s comments about an imminent US rate hike. This fail at 102 has kept the potential H&S valid for the time being.
USDX daily: the close back below 102 is helping to keep the potential H&S alive. Watch for any hold below this level and, if so, then the 100 level (as strong previous S/R) and the H&S neckline. However, any recovery and hold back above 102 would void this bearish pattern and would be a bullish signal. Thus, 102 is the main level to watch for any make or break activity:
USDX daily Cloud: price has dipped back into the Cloud but watch for potential support from the bottom of this region:
USDX weekly: recall that I’m now seeing the weekly chart as more of a broadening wedge than a Bull Flag. Breakouts from these patterns can as easily be to the upside as the downside:
The weekly USDX candle closed as a bullish coloured Doji reflecting indecision.
EURX weekly: the EURX weekly candle closed as a bullish candle and, rather significantly, as an almost bullish engulfing one at that!
USD data for next week: There is USD GDP early in the week but NFP is the probably main scheduled USD data item to monitor next week. There are Central Bank updates from the RBA and ECB which could impact here though too.
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