It’s been a choppy start to the week with the US$ index continuing to receive support from the weekly 200 EMA. Caution is needed in this Thanksgiving holiday week.
The US$ has recovered a bit after US CPI and Retail Sales data and so that has slowed the movement with some FX pairs. This recovery triggered a 5 R breakout trade on the USD/MXN though, a pair I yesterday suggested was worth watching.
There have been a number of trend line breakout trades and great new TC signals over the last 24 hours. Whilst a number of these came from the FX cross pairs the recent Flag break on both FX Indices might be able to take some credit as well. The week is not yet competed but the weekly Flags on the FX Indices must certainly offer some hope to FX traders!
The US$ and stocks have retreated on the back of concern about the progress of US Tax reform and this has helped to trigger some new TC signals.