Both FX Indices have closed with bearish weekly candles and the chart patterns on display over recent weeks remain. However, there has been one small change and that is that the indices have slipped into FX Alignment for what I used to call classic-style Risk-On. Read on to find out more. A recent example of this alignment delivered a good run on the EUR/USD so watch out for any potential of more of the same.

DXY

DXY weekly: another bearish weekly candle and trend line adjusted as ADX momentum remains below the 20 threshold:

DXY daily: watch for any momentum-based trend line breakout:

DXY 4hr: ditto:

EURX

EURX weekly: another bearish-coloured Spinning Top:

EURX daily: this still has the look of a bullish Cup ‘n’ Handle style pattern:

EURX 4hr: watch for any momentum-based trend line breakout:

FX Index Alignment: The FX Indices have just become aligned for classic risk-on for currencies so watch to see if this persists and has any impact:

• EURX: is just 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: quite a bit of data but keep an eye on Covid developments: