Weaker than expected US ISM Non-Manufacturing data was the trigger that sent the US$ below key support during the US session. This US$ weakness is dragging some Yen pairs back down to key levels that I discussed in my w/e analysis. Stocks, Gold, Silver and Commodity currencies have rallied though in a classic style ‘risk-on’ reaction to this US$ weakness with the NASDAQ closing again at a new all time high. Some new TC signals were triggered as a result of this US$ move.
USDX: Price action is now back below the 4hr and daily Cloud supporting SHORT US$:
USDX 4hr: I Tweeted yesterday to watch for any triangle breakout on the US$ and this was the chart from that Tweet.
This is the 4hr chart today. The triangle trend lines and key 95.50 were broken:
USDX 30 min: the 30 min chart shows this breakdown following the data release:
Gold: I don’t have any new TC signal on Gold just yet but a LONG signal is trying to form off the daily chart. I will need to check this again tomorrow.
Gold 4hr: I Tweeted yesterday to watch the $1,340 level with Gold and this was the chart from that Tweet:
This is the 4hr chart today showing how price rallied to that key S/R region like filings to a magnet!:
Gold 30 min: the 30 min chart shows how this metal gave a nice trend trade during the US session.
TC Signals: the US$ weakness has triggered a few US$ SHORT signals but traders need to note that these signals are aligned. A couple of these come with caveats though!
EUR/USD 4hr: a new TC LONG signal triggered here and price is back above the key 1.22 level:
E/U monthly: showing significance of the 1.12 level:
NZD/USD 4hr : a new TC LONG signal triggered here and price has broken the recent HIGH S/R level of 0.74:
GBP/USD 4hr: there has been a new TC signal here too but I’m not keen on this one for a couple of reasons. Firstly, price is now back under the key 1.35 level, which was the GFC Low, and so it could be choppy at this major S/R zone. Secondly, a reflection of this S/R zone is embedded in the daily Cloud chart which shows price trying to move up through thick Cloud. Not an easy feat. There is GBP Manufacturing PMI data tonight and so I would suggest waiting until after that news to see if price action will either make or break this 1.35 level:
G/U daily Cloud: a big job ahead!
Silver daily: there has been a new TC LONG signal off the daily chart here BUT note the recent bear trend line. It might be safer to wait for any break and hold above this resistance zone:
Other Forex:
Yen pairs: I wrote a summary last weekend on how I was going to be watching for any pullback on the Yen pairs to key levels and price action is getting down close to these levels. I’m watching for any make or break of these levels:
U/J 4hr: watching the 101.5 and 61.8% fib area:
E/J 4hr: watching the 61.8% fib area near 114:
GBP/JPY 4hr: watching the 61.8% fib near 134:
A/J 4hr: watching the 61.8% fib near 77.50:
A/U 4hr: the Aussie rallied after the RBA rate hold. Note how price action is above the recent wedge trend line and the 3.5 year bear trend line. This move, sadly, did not trigger any new TC 4hr signal. Traders now need to watch for any weekly or even monthly close above the 3.5 year bear trend line:
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