The US$ index has closed the week lower despite the US rate hike announced in the previous week. Both FX Indices remains in their respective Flag patterns so the wait for a decisive breakout continues.
USDX weekly: the US$ index is still shaping up in a potential Bear Flag. Watch for any momentum-based trend line breakout:
USDX daily: Price action is still holding up near the weekly 200 EMA. Watch this level, and the Flag trend lines, for any momentum-based breakout.
EURX weekly: This index closed with a bullish weekly candle and back up near the top of its developing Bull Flag. Watch for any momentum-based trend line breakout here too:
FX Index Alignment: the FX Indices have slipped into alignment for risk on or LONG EUR and SHORT US$. Such periods often, but not always, enable decent trending markets. Thus, watch for any follow through with respective FX pairs.
Calendar: there isn’t a lot of data next week given the Christmas period: