The US$ weakened during Tuesday’s trade despite upbeat US data and I’m wondering if this bit of divergence will develop, or, if it is just a function of month-end activity. Either way, the FX Index alignment, that had been in force for the last three weeks, has now faded meaning caution is needed with 4hr chart signals and better trading is likely to be had from 30 min charts. I’ve been struggling to find a focus between the 4hr vs 30 min chart time frame since my October trading trip but this development means the 30 min charts may be the better ones to stalk for the time being.
USDX 4hr: weaker but no momentum breakout, hence, trend lines adjusted:
USDX 4hr Cloud: back in the Cloud undermining alignment:
EURX 4hr Cloud: back in the Cloud undermining alignment here too:
GBP/JPY: no new LONG signal on the 4hr chart but there was a great signal on the 30 min chart. This is a pattern that I find to be quite common when the FX Indices are divergent:
G/J 30 min:
EUR/JPY: as with the GBP/JPY, no new LONG signal on the 4hr chart but there was a great signal on the 30 min chart:
E/J 30 min:
GBP/USD: no breakout on the daily chart triangle but there was a great 30 min signal within this pattern:
GBP/USD 30 min:
EUR/USD: still below the key 1.07 and, although it has moved higher, there have not been any new 4hr or 30 min TC signals. Maybe watch for any make or break off the 1.07? Then grab any 30 min signal.
E/U 30 min:
USD/JPY 4hr; not a lot happening here for now:
AUD/USD 4hr: choppy but still have the key fibs in focus:
Kiwi 4hr: much the same here: