The US$ moved lower again last session and is shaping up to print a bearish monthly candle. This shift has helped to develop the bullish-reversal descending wedge on the EUR/USD as well as to support Gold and the commodity currencies. Watch today for any end of month flows.

FOMC is over so here is how I am seeing the charts in the wash up. The drill remains the same: watch for any new momentum-based trend line breakout.

The US$ is a bit weaker ahead of today’s FOMC. This has helped to weaken the USD/JPY and support the EUR/USD. Traders should watch to see how these pairs react to FOMC news and assess chart patterns after the dust settles.

There has been little change across most instruments as market participants wait for clues with this week’s big batch off tech earnings. Keep watch for any new momentum-based trend line breakouts.

Last week: Traders and investors shrugged off any concern they had about inflation and the expanding impact of the Delta strain of Covid and bought last week’s dip resulting in the print of impressive new all-time Highs for many stock indices. The S&P500, DJIA, NASDAQ, and even the Aussie XJO, all closed with impressive weekly […]