The US$ had a bearish week following the previously weekly break down through 95.50 support. There is FOMC in the coming week and I’ll be watching to see if this can reverse recent bearish sentiment at all.
The US$ has finally broken down below the key S/R level of 95.50 and looks set to be headed for some mean reversion. US$ Bulls can relax for a bit longer though.
There is a bit of talk about the US$ index closing higher for the week but the EUR$ index closed up for the week too! Clearly, some discretion is needed for any trading bias based on US$ Bull sentiment. The 95.50 level remains the one to watch for the next make or break move with the US$.
It’s been a bad week for the US$ with bearish continuation kicking in after the index failed to recover above the broken support trend line and the weekly Cloud with these old Support levels now being rather formidable Resistance zones. Relatively hawkish commentary from ECB Draghi and BoE Carney dominated over US rate hike thoughts and undermined the US$. There is a lot of US data slated for next week so watch to see how these items impact the current downtrend.
There’s lot of talk about future US rate hikes yet the US$ remains below major resistance levels and I’m wondering what type of data or Fed talk is needed to get the the index over these levels? Both FX Indices printed bullish coloured indecision-style ‘Spinning Top‘ candles last week and both are trading under major weekly resistance so it’s a ‘draw’ for them at the moment.