The USDX traded higher overnight despite mixed US data but still hasn’t avoided a bearish ‘Double Top’. US wages data seemed to lift spirits and this, along with the China rate cut, got stocks moving along with the three major US indices closing at record highs and the NASDAQ claiming the coveted 5,000 level for the first time in 15 years!
USDX 4hr: higher on the day but still below the key 95.50 level for the time being:
USDX weekly: Bull Flag or bearish Double Top? It still isn’t clear just yet.
EURX daily: this index traded higher on the day and the Chinese rate cut may have helped here but the Bear Flag is still looking rather ominous. Remember, I am seeing the 96 as a possible Double Bottom here though but any break and hold below this level would support the Bear Flag:
TC Signals: these have been mixed again:
USD/JPY: this signal has moved on for about 70 pips but the main point to note here is that a daily bear trend line has been broken, even if only marginally. I wrote a separate article about this pair yesterday and this can be found through the following link. Essentially though, I’m waiting to see if the USD index breaks up through the 95.50 level as I suspect this would support the move on the U/J. The daily triangle is worth about 600 pips and this would take price up to complete the monthly chart’s 2,400 pip Cup ‘n’ Handle pattern.
U/J 4hr: note the close above the trend line. Watch for any continuation especially if the USDX breaks 95.50:
U/J daily: it looks like a breakout from a 600 pip triangle pattern may be on the way:
U/J monthly: the monthly chart’s Cup ‘n’ Handle might complete but then set up another, even larger, Cup ‘n’ Handle!
E/U 4hr: this signal closed off flat:
E/J: this closed off for -80 and the U/J run seems to have helped to lift this pair:
A/U: this is looking heavy prior to the AUD Interest Rate announcement. Many are expecting a rate cut:
A/J: still above daily support ahead of RBA rate news:
Cable: this is looking heavy again and has broken down through a recent support trend line. I have a new TC signal BUT as price is still in the 4hr Cloud this signal isn’t valid. Any further price weakness could change this though:
G/U 4hr: a broken trend line:
G/U 4hr: stuck in the 4hr Cloud though for the time being:
G/U daily: is holding below 1.55 and, now, the ‘Bear Flag’ is looking like a more credible option. It may come down to whether the USD breaks up or down from its current 95.50 level though:
Kiwi: looking heavy here too despite the Chinese rate cut news. I have a new TC signal here too BUT, like with the Cable, the signal isn’t valid yet as price action is above the 4hr Cloud. Any speedy dip below the 4hr Cloud and support trend line could change this though:
Kiwi 4hr: watch for any break of trend line support:
Kiwi 4hr: a dip below the Cloud could validate a new TC signal:
Loonie: still ranging within the Flag. This is all helping to form up a possible monthly Cup ‘n’ Handle though:
USD/CAD 4hr: ranging within a triangle:
USD/CAD monthly Cloud: a Cup ‘n’ Handle on the way here?
Silver and Gold: these two seem to be hanging in the balance and waiting to see what the USD does:
Silver: do you think Silver knows where the trend line is drawn? Note the almost perfect respect of this resistance:
Gold: got a bit ahead of itself…it obviously missed the lesson on trend lines!
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