US stocks closed lower on Tuesday as, for some reason, Covid became an issue today. It wasn’t an issue yesterday but today it was. Regardless of this prevarication, I have been warning for weeks about the need for caution as Volume and Momentum continue to decline with this latest S&P500 rally. Divergence is always a warning. The AUD/USD and AUD/JPY are worth greater focus at the moment as both sit near major S/R zones after significant rallies. It might be worth watching for that pause or pullback I have been warning about. I had warned two weeks ago to watch the bullish-reversal Descending Wedge on the GBP/USD and this breakout move has essentially competed proving the advantage of being strategic and watching for momentum-based trend line breakouts.

Data: there is little scheduled news today BUT watch for Covid-related news; especially with the Brazilian President being diagnosed with Covid and renewed lock downs in Australia.

DXY daily: is this just a test of the broken trend line? Watch for which way the index heads from here:

Trend line breakouts:

GBP/USD 4hr: this Descending Wedge breakout has essentially completed so watch 1.26 for any new make or break:

Other markets:

S&P500 4hr: revised trend lines to monitor for any new momentum breakout:

ASX200 4hr: looking heavy so watch 6,000 for any new make or break:

Gold 4hr: watch $1,800 for any new make or break:

EUR/USD 4hr: revised trend lines to watch for any new momentum-based make or break:

AUD/USD 4hr: The 0.70 is major S/R so watch for any pause here. There are revised trend lines to watch for any new momentum-based make or break:

AUD/JPY 4hr: The 75 is major S/R so watch for any pause here. Watch for any new momentum-based make or break:

NZD/USD 4hr: The major 7 yr bear TL is just above so watch for any pause here. Watch 0.655 for any new momentum-based make or break:

USD/JPY 4hr: There are revised trend lines to watch for any new momentum-based make or break: