The US$ closed lower for the week and is now below the daily and 4hr Cloud. Currency traders need to monitor for any new FX Index alignment as this has the potential to trigger the return of trending markets.

DXY

DXY weekly: a bearish weekly candle:

DXY daily: momentum remains below the 20 level so I have adjusted the trend lines. Watch for any new momentum-based trend line breakout:

DXY 4hr: watch for any bearish momentum breakout:

EURX weekly: a bullish weekly candle and still looking like a Bull Flag:

EURX daily: momentum remains below the 20 level here too so I have adjusted the trend lines. Note how price action is up at the top edge of the Cloud so watch for any new breakout here as this would tip the FX Indices into Index Alignment for risk on. Any such alignment is no guarantee of trending markets but is supportive of the potential. Watch for any new momentum-based trend line breakout:

EURX 4hr: watch for any bullish momentum breakout:

FX Index Alignment: the FX Indices are not aligned at the moment BUT watch this week for any shift:

• EURX: is below the 4hr Cloud but in the daily Cloud so currently not aligned and prone for potential choppy EUR$ price action.
• USDX: is below the 4hr Cloud and below the daily Cloud so aligned for weak USD$ price action.

Calendar: there are 3 Central Bank update to monitor next week: