How’s that for some early morning alliteration! I’m back from the beach, sitting by the pool and just checking over charts with a deep sense of satisfaction. There’s been a bearish pattern brewing on the US$ for months now and so I’ve been keeping an open mind here despite all the bullish US$ / rate hike media talk and commentary. This has paid off as the bearish Flag has developed further and given some great TC signals off the EUR/USD in the process! In the absence of much high impact news scheduled for next week, these Flags might dictate trends for a bit longer!
USDX weekly: The Bear Flag looks to be getting going here now and price has closed the week below the weekly 200 EMA which is also bearish.
USDX daily: watch for any support from the 92.50 level and, if that gives way, then from the recent low near 91:
EURX weekly: there has been a bullish breakout now from this Bull Flag. Watch for any resistance from the recent high though in ‘Double Tap’ fashion:
Trend line breakout and TC signals:
EUR/USD: this pair offered one of the cleanest trend line breakout trades and a couple of great TC signals along the way as well:
EUR/USD 4hr: a bullish trend line breakout move for 170 pips:
EUR/USD 15 min: a few great TC signals here and my preference was to look for LONG trade signals given the FX index patterns. The best two were for 7R, after the trend line breakout, and for 5.5 R during last session. Both signals were low-risk set ups making them ideal TC candidate trades during the European sessions:
Calendar: there isn’t a whole lot of high impact data so watch for technicals to potentially drive FX trend moves next week: