The US$ dipped on Friday and, whilst some are reporting this is due to weak US data, I suspect this is more of a technical reaction to the huge 100 whole-number level. The US$ has been on a rally for much of the last seven weeks so some pause or pullback might be in store, even if there is to be eventual bullish continuation. Coronavirus fear accelerated last week, although data reporting remains an issue, but watch for any further development in this space.

Friday’s weak batch of US data:

DXY

DXY weekly: a bullish weekly candle but note the long upper shadow. Price pulled back from the whole-number and psychological 100 level so watch this for any new make or break:

DXY daily: note the large bearish daily candle reaction at the 100 level:

DXY 4hr: this could evolve into a Bull Flag so watch trend lines for any breakout; up or down:

EURX

EURX weekly: this condensed view shows that price action is still in a longer-term downtrend:

EURX weekly expanded: the weekly candle was bullish though with a bit of a reversal-style Hammer look to it:

EURX daily: a continued print of lower Highs and lower Lows:

EURX daily expanded: whilst not a text book 3-candle Morning Star reversal pattern there looks to be some effort to try and BASE:

EURX 4hr: note how the 110 S/R level is near the 61.8% fib of the recent 4hr chart swing Low move. This would be the target in any relief rally:

FX Index Alignment: The FX Indices are still aligned for classic risk-off for the currencies BUT watch for any shift:

• EURX: is below the 4hr Cloud and below the daily Cloud so aligned for weak EUR$ price action.
• USDX: is above the 4hr Cloud and above the daily Cloud so aligned for strong US$ price action.

Calendar: not a lot of scheduled data BUT monitor the ongoing Coronavirus situation: