The US$ index will close sharply lower for the week following FOMC guidance that US rates will be kept lower for longer and also due to weaker US data. The index has struggle to remain above the key 100 level but this remains a key level to monitor in coming sessions.

DXY

DXY weekly: a large bearish weekly candle but still not much momentum:

DXY daily: note how the 61.8% fib sits near 98 so watch this for any new make or break:

DXY 4hr: any recovery effort would bring the 4hr chart’s 61.8% fib, near the key 100 level, into focus:

EURX

EURX weekly: a large bullish weekly candle but not much momentum here either:

EURX daily: watch for any close back above the Cloud:

EURX 4hr: the index is back above the Cloud and 110 level:

FX Index Alignment:

• EURX: is above the 4hr Cloud but in the daily Cloud so not aligned and prone for potential choppy EUR$ price action.
• USDX: is below the 4hr Cloud and at the bottom of the daily Cloud so currently not aligned and prone for potential choppy USD$ price action. However, the candle has not closed so watch for any further weakness to tip this into US$ SELL.

Calendar: Covid-19 remains the dominant theme for now however: