There were large reversal moves on the FX Indices, and, whether this is just a bit of mean reversion or a shift to a new trend is not clear. These are unusual times and trying to apply the logic of technical analysis might prove to be a fools folly, but, I’ll give it a go!
DXY
DXY weekly: a large bullish weekly candle and above 98 S/R so watch the 100 level for any new make or break. Note the adjusted lower trend line:
DXY daily: back above the Cloud:
DXY 4hr: above the Cloud so watch for any push to the 100 level:
EURX
EURX weekly: a large bearish weekly candle BUT is this just a test of the recently broken long-term line?
EURX daily: still above the Cloud after a 61.8% test but watch this trend line for any new make or break:
EURX 4hr: could this be a Bull Flag? Watch for any new trend line breakout: up or down!
FX Index Alignment: the FX Indices are not aligned for either risk-off or risk-on, ie: both are in same direction, so expect some choppy price action:
- EURX: is still above the 4hr Cloud and above the daily Cloud so aligned for LONG EUR$ price action.
- USDX: is back above the 4hr Cloud and above the daily Cloud so aligned for LONG US$ price action.
Calendar: Coronavirus remains the main focus but there is FOMC this week as well:
