The US$ pulled back to a key technical support level last week but, unless this is broken, the trend remains ups. The FX Indices are back to being divergent so extra caution will be needed with Forex trading.

DXY

DXY weekly: a large bearish, almost ‘engulfing’ weekly candle and note how this closed just above the 98 S/R level. This will be the level to watch for any new make or break:

DXY daily: I had warned to watch for any pullback to the 61.8% fib and this is what we got! This will be the level to watch for any new make or break. Remember, technical theory would say the uptrend remains intact until this 61.8% fib is broken:

DXY 4hr: watch the trend lines for any breakout:

EURX

EURX weekly: a large bullish weekly candle:

EURX daily: note how the pullback has reached to the 61.8% fib so watch this for any new make or break. Any hold below this level would suggest the downtrend remains intact:

EURX 4hr: watch the 4hr chart’s fibs if price action pulls back from here:

FX Index Alignment:

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

Calendar: Coronavirus remains the main theme but watch also for impact from US NFP.