Risk-on sentiment continued last session with the DJIA closing above the whole-number and psychological 30,000 for the first time. The US$ looks like it could be starting to weaken so keep watch of the next support level for any new make or break.
One of my subscribers asked me to review the EUR/NZD pair and here is what I am seeing on the charts. As always, I start with a top-down approach using the monthly time frame and then drill down to the 4hr chart.
Risk appetite received a boost on Monday with more upbeat Covid vaccine news. This underpinned stocks in their continued drift higher and resulted in Yen and Gold weakness but the US$ remains range-bound. This shift triggered some decent trend line and range-breakout trades on Gold and the Yen pairs.
It has been tough going for Forex traders as the US$ index chops sideways along a support trend line and this has kept many currency pairs choppy as well. Most chart trend lines have been adjusted due to low momentum evident against this sideways DXY movement.
It is almost like someone hit the pause button on most trading instruments today. The US$ index has shaped up with another indecision daily candle and that kind of sums up a lot of things.