I mentioned two weeks ago to watch out for any follow-through with the risk-on shift with the FX Indices and this proved to be wise. The EUR/USD gave the best move last week. The FX Indices remain similarly aligned so watch for any more of the same. The bullish Cup’ n’ Handle on the EURX looks like it has made a breakout so this begs the question: is the EUR$ just starting to wind up for its next big move? This might seem bizarre given the global situation with Covid-19 BUT the only thing trades can do is to watch for trend line breakouts and to manage risk and trade size appropriately.

DXY

DXY weekly: a bearish weekly candle despite the surge in Covid cases around the world. No Flight to Safety move here yet:

DXY daily: watch for any push to 95 S/R:

DXY 4hr: watch for any trend line breakout:

EURX

EURX weekly: a bullish weekly candle:

EURX daily: this Cup ‘n’ Handle looks to have got going but the recent High is just above so watch this for any reaction:

EURX 4hr: watch 115 for any new make or break:

FX Index Alignment: The FX Indices remain aligned for classic risk-on for currencies so watch to see if this persists and has any further impact on the EUR/USD:

• EURX: is above the 4hr Cloud and above the daily Cloud so aligned for STRONG EUR$ price action.
• USDX: is below the 4hr Cloud and below the daily Cloud so aligned for WEAK US$ price action.

Calendar: no Central Banks reporting next week but watch for impact from US Earnings and Covid-19 news: