The US$ last week bounced up from the support of the key 100 level and bottom of the daily Ichimoku Cloud. It remains above the recent Low but below its recent High in behaviour somewhat reminiscent of the Grand Old Duke of York…neither up nor down! Both FX Indices remains trapped in the resistance zone of their daily Ichimoku Cloud suggesting further choppiness but some or all of next week’s USD-related data might help to get the US$ moving.
NB: this is just a brief update as I am away this w/e.
USDX daily: the US$ index did print a lower Low last week but this failed to hold. Price action has bounced up from this region but has not reclaimed the recent High of 102. Any respect of 102 would help to shape a potential bearish-reversal H&S pattern.
USDX daily Cloud: price action bounced up from the bottom of the daily Cloud but remains trapped within this zone. The top of the Cloud will be resistance to add on to that offered by 102.
EURX daily Cloud: this index is also trapped in the daily Cloud suggesting further choppiness.
USD data to come this week: It is a very busy week for the US$ with data in the coming week so watch to see if one or other of these items can get it moving. (Sydney times)