There hasn’t been much of a shift from yesterday other than a bit more US$ strength. The Currency Strength Indicator chart shows how the currencies are converging on the 4hr time frame. The ECB rate update is later today so watch to see how this impacts overall market sentiment.

The US$ is a bit stronger but it pays to remember that the index is still consolidating in a range-bound pattern on low momentum. Gold and the commodity currencies are a bit weaker, due to this US$ strength, BUT momentum is low across many of their 4hr charts as well. This messiness might remain the […]

It has been a quiet start to the week given the US holiday Monday. The RBA meet today and this has the XJO and AUD currency pairs in focus.

The S&P500 and NASDAQ have closed at new Highs ahead of Fridays US jobs report. The US$ remains weak and this helped to develop the breakout moves that were already underway from earlier in the week. Same caveat applies: make sure to manage risk on any open positions into NFP.

The US monthly jobs report is not released until Friday but the ADP private sector report released last session showed a significant decline and this has resulted in a weaker US$. This shift helped to boost the commodity currencies and develop the descending wedge b/o on the EUR/USD. Caution is needed ahead of Friday’s NFP […]