The US$ and EUR$ have both closed higher on the day but this unusual tandem activity spells ‘divergence’ and thus ‘caution’. Well, it does to me at least! There have been some FX reversals due to the pick up in the US$ and stocks have paused to mull over the lack of extra ECB stimulus.
USDX 4hr: bounced up off 61.8% fib support:
EURX 4hr: also bounced up off 61.8% fib support and has broken up through a recent bear trend line:
Gold 4hr: this has pulled back with the recent US$ strength so watch for any move lower to the congested zone:
E/U 4hr: this eventually advanced 70 pips after the ECB but has since pulled back:
Kiwi 4hr: no further gain and now back below 0.74:
Silver daily: no breakout above the bear trend line yet:
Yen pairs: I wrote on the w/e how I was looking for pullbacks on the Yen pairs to specific levels. The U/J and E/J have bounced off these 61.8% fib levels to perfection!
U/J 4hr: this gave the 200+ pip pullback I suggested traders watch for BUT now look out for any move back up to test the 8 month bear trend line:
E/J 4hr: this pair gave the almost 200 pip pullback I suggested traders watch for too BUT the E/J is now trying to print a new TC LONG signal:
GBP/JPY 4hr: This also has given over 200 pips in the pullback but the G/J is holding above the key 134 level:
A/J 4hr: a bounce after the pullback but a choppy one:
A/U 4hr: this is heading south again due to US$ strength so watch for any reaction at the congested 0.76 area:
GBP/USD 4hr: still holding above support so watch for any trend line breakout: up or down!
USD/CAD 4hr: oh this range bound action just continues: