The USD is really starting to struggle now. How can I justify that claim? Well, there was further strong US data released overnight and, yet, it couldn’t manage to break out of the recent Flag pattern and it appears it won’t even manage to print a bullish daily candle close! If it can’t rally on a good day…when will it?
USDX daily: strong PPI data was released overnight yet the daily candle looks certain to close as bearish:
USDX 4hr: still ‘Flag’ bound however:
EURX daily: this index defies belief but is still looking strong as it holds up and out from the bullish channel breakout:
EURX daily Cloud: I had commented on this chart earlier and noted the classic pattern of: breakout, pull back to test support followed by continuation that we might be seeing here:
The EURX has made a bullish move and, whilst the USD is struggling, it has yet make any breakout move. Any Flag trend line break with momentum might help to guide traders here.
Sydney is enjoying some spectacular weather, so, I’m off to the beach before reviewing the rest of the market