The FX Indices both look like closing with indecision-style Spinning Top weekly candles. This report has been prepared before the markets close though, as I have a trading course this weekend, so traders should confirm this once the markets close. This week bring the FOMC rate decision so watch to see if this impacts the FX index landscape.
DXY
DXY weekly: an indecision-style Spinning Top weekly candle; albeit bullish coloured. Note the hold of the bullish-reversal descending wedge so watch for any momentum-based trend line breakout:
DXY daily: still below the daily Cloud:
DXY 4hr: price action is just back in the Cloud here so watch for any further recovery:
EURX
EURX weekly: a bearish-coloured indecision Spinning Top weekly candle:
EURX daily: still in an uptrend on the daily chart though due to the print of higher Highs and higher Lows:
EURX 4hr: watch for any trend line breakout:
FX Index Alignment: the FX Indices are not aligned at the moment BUT watch for any shift:
- EURX: is above the 4hr Cloud and above the daily Cloud so still aligned for STRONG EUR$ price action.
- USDX: is IN the 4hr Cloud but below the daily Cloud so currently not aligned and prone for potential choppy USD$ price action.
Calendar: FOMC looks like it might be the main scheduled event to monitor this week, however, keep watch of news about the US stimulus deal and US Covid case load as well:
