The range-bound nature of the USD index is ensuring choppy action across many FX pairs.
USDX daily: the index continues to chop sideways and this price action can be viewed as either a bearish ‘Double Top’ or a ‘Bull Flag! A close and hold beyond either 92.50 or 95.50 needs to be seen to clarify this issue:
TC Signal:
Cable: the TC signal has closed off here for a 40 pip loss. I am long here but staying in this trade for now:
G/U 4hr: holding above the broken weekly bear trend line is bullish:
G/U weekly: the weekly chart shows how the bullish bounce up off 1.50 support has continued and how this pair made a bullish trend line breakout last week. This bear trend line had been in force since July last year and so this breakout is quite significant. The current pause with price, following three bullish weeks, the daily Ichimoku Cloud set up and given the current USD situation, isn’t really surprising.
G/U 4hr Cloud: price is holding above the 4hr Cloud:
G/U daily Cloud: price is stuck in the daily Cloud and so trading this recent TC signal wasn’t the smartest move of mine. Traders who are bullish on the Cable would really be best to wait and see if it can close and hold above the daily Cloud:
Other FX: many pairs remain choppy due to the lack of clear direction with the USD.
E/U: directionless due to the USD and also as Greek debt issues remain unresolved:
A/U: waiting for some guidance from either a move with the USD or one triggered by today’s RBA Minutes:
Kiwi: seemed to make a bullish move up from the ‘inverse H&S’ but, then, it ran into the 4hr 200 EMA:
U/J: this seems to be back to consolidating and taking its cue from the USD index:
U/J 4hr: is gravitating towards the 118.5 given the lack of certainty with the USD:
U/J daily Cloud: price has slipped back into the daily Cloud and so I’m waiting for any breakout here, up or down:
U/J 4hr Cloud: price is back in the 4hr Cloud too. A pair to avoid at the moment!
U/J Daily: I have adjusted the triangle trend lines here to reflect the recent price action. That apex is a long way away!
Loonie: price action here is reflecting that of the USD: range bound!
Silver 4hr: holding out form the wedge breakout but not moving too far given the state of the USD:
Gold: ranging within a descending wedge and under the $1,250 S/R level but above $1,225 support:
