The US$ is lower for the week as the markets wait for the result of the US Presidential Election. A Democrat win is now widely expected and the prospect of a divided Congress is supporting risk assets and thereby putting pressure on the US$. The FX Indices are now aligned for risk-on BUT caution is required as momentum remains low on both indices across some time frames.

DXY

DXY weekly: a bearish weekly candle that has closed below the recent support trend line and, also, back below the 10-yr trend line. Watch the 91.75 for any new make or break and, after that, watch the recent Low near 88.

DXY daily: below the Cloud BUT note how low momentum persists on this time frame:

DXY 4hr: the only bright spot for the index is the look of this bullish-reversal descending wedge on the 4hr chart. Watch for any relief rally here; even if this is only temporary:

EURX

EURX weekly: a bullish weekly candle with a Bull Flag breakout so watch for any push to the previous High, circa 125:

EURX daily: above the Cloud BUT note how low momentum persists on this time frame as well:

EURX 4hr: bullish momentum is on the rise here so watch for any push to 125:

FX Index Alignment: The FX Indices are now aligned for classic risk-on for currencies so watch to see if this persists:

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

Calendar: the US Presidential Election remains key news to monitor as the world waits for a result and for how any transition, if required, might progress: