The FX Indices have both printed reversal weekly candles raising the question about whether some mean-reversion might be due, even if only temporarily. This would have obvious consequences for many currency pairs and commodities so needs bearing in mind for trading in coming sessions. This week’s main calendar item is the Jackson Hole Symposium so watch to see how any news from this event might impact the US$.

DXY

DXY weekly: a bullish-reversal Hammer candle for the week:

DXY 4hr: a fairly new momentum bullish breakout so watch for any continuation:

DXY 4hr + Fibs: watch fib levels for targets on any mean-reversion move:

EURX

EURX weekly: a bearish-reversal Shooting Star style weekly candle:

EURX 4hr: back in the 4hr Cloud so watch for any new push below this support:

FX Index Alignment: the FX Indices are not aligned at the moment.

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

Calendar: the Jackson Hole Symposium will be the event to watch: