This is just a very brief update as I’m about to head down to, of all places, Wall Street. Keep an eye on the US$ as it tries to break up and out from the recent trading channel as this will have implications for USD-based FX pairs.
The US$ has pulled back a bit which helped to trigger some great EUR-based trend line breakout trades over the last session. I’m hoping the TC Trial participants made some hay out of these great moves.
The lack of economic news has translated into little movement with most currency pairs on my radar. There were a couple of great TC 15 min signals during the Asian session though; one on Silver for 4R and another on the ASX-200 for 6R but, apart from that, most technical patterns on other currency pairs remain intact. Friday is another quiet day for scheduled economic data and so I’m not expecting too much to trigger although the batch of second tier EUR PMIs could produce some movement in this relative vacuum. The bad news? There isn’t much on the economic calendar for next week either!
There have been two significant trend line breakout trades but many remain in focus in the lead up to President Trump’s address to the joint session of Congress. The USD/CAD has given 120 pips in a wedge breakout and the USD/TRY over 450 pips from its wedge breakout; both wedge patterns charted and posted on this site well in advance of any breakout move. The same drill applies for the remainder now though: watch for any momentum-based trend line breakout.
Gold gave a 200 pip breakout move from my w/e Flag pattern but, as already mentioned, I’m on the lookout for a pullback to test the key $1,200 level. I’m watching the 30 min charts for any new TC SHORT signal to support a possible move. The US$ index is trying to bounce up from a support trend line and some relief rally with this could develop a pullback move with Gold.