Flag patterns have been brewing on the FX Indices for over three months but both are now coming under pressure. Momentum is building on both Flag patterns so any watch for any sustained breakout as this will have follow-through impact for FX trading. There isn’t a lot of scheduled data for next week and the US Thanksgiving holiday might keep things a bit quiet but watch out for ongoing US tax reform debate to impact here as well.
USDX weekly: This Bear Flag looks to have started but note the support from the weekly 200 EMA. This is the level to watch in coming sessions for any new make or break. Note also note the uptick with bearish momentum:
USDX daily: a break of recent support but watch the weekly 200 EMA for any new make or break:
EURX weekly: no clean-cut breakout this week but note the uptick with bullish momentum:
FX Index alignment: the indices are not aligned at the moment.
Calendar: there are some speeches and the Thanksgiving holiday to navigate this week: