The US$ and EUR$ index both closed higher for the week continuing the divergence I’ve been noting in recent posts. The irony being that this positive correlation on the indices, for me at least, equals divergence! However, the EURX has one up on the USDX in that it has closed above the resistance zone of the weekly Ichimoku Cloud. Traders need to watch out for any shift with the indices that triggers alignment though as these periods generally produce better trending markets.
NB: this is just a brief FX Index update as I’m busy with family this weekend.
USDX weekly: still holding above the 95.50 but range-bound between 92.50 and 100.
USDX weekly Cloud: still stuck in the weekly Cloud for now:
EURX weekly: a small bullish close for the week and, like the weekly USDX, also still range-bound:
EURX weekly Cloud: a small achievement but worth noting none the less. A weekly candle close above the weekly Cloud. Traders need to see if the index can continue with this bullish hold though as it has slipped back to be within the 4hr Cloud which is a recent bearish shift: