The US$ had a good week on the back of some flight to safety flows due to rising Covid cases in the USA and Europe. The week ahead is likely to be volatile due to the US Presidential Election so it might be best to wait and assess the FX indices after this risk event.

DXY

DXY weekly: the DXY closed with a bullish engulfing weekly candle and has broken above a triangle chart bear trend line and back above the recently broken 10-year support trend line.

DXY daily: the next resistance zone for the DXY to battle is the top of the daily Cloud BUT note how momentum remains low on this time frame:

DXY 4hr: watch for any push up to the recent High:

EURX

EURX weekly: a large bearish weekly candle:

EURX daily: price is back below the daily Cloud. The bottom Flag trend line has only two touches so is not very reliable. Note the absence of momentum here though as well:

EURX 4hr: watch for any new Flag trend line 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 and below the daily Cloud so aligned for weak EUR$ price action.
• USDX: is below the 4hr Cloud but IN the daily Cloud so currently not aligned and prone for potential choppy USD$ price action.

Calendar: there are three Central Bank rate updates and US NFP this week but the main news event is the US Presidential Election.