FX Indices Review 28/01/13

NB: This is a brief version of my update as I have been away.

USDX

Still tracking sideways as it has been for some days now. As it does this though it edges closer towards the upward rising, weekly chart, bull support trend line. Price is stuck at the weekly 200 EMA, weekly and monthly pivot level.
Monthly

Weekly

Daily

4 hr

USDX Ichimoku Cloud: Price is just below the Ichimoku Cloud on BOTH the 4hr and Daily time frame and this favours more ‘risk on’. 
USDX Daily Cloud

 USDX 4hr Cloud


EURX
The monthly candle is HUGE for this breakout from the triangle pattern and weekly 200 EMA on the EURX. Price is now at the 108.5 area. You may say….’so what’. I’d say though, check this level on the monthly chart. The 108.5 area has been a significant S/R level for the EURX over recent years. I have placed a horizontal level on my monthly chart to illustrate this. What will/could this mean? Well, given we’ve had such a big move over the last month and that this level is very significant it may mean that this level may give the EURX some pause before the next major move.  It may also be a point for the EURX to retrace from and re-test the weekly 200 EMA and triangle trend line. So, I won’t be chasing any ‘risk on’ signals just yet until I see some sign that this level will be breached.
Monthly

Weekly

Daily

 4 hr

EURX Ichimoku Cloud: Price is above the Ichimoku Cloud on BOTH the 4hr and Daily time frame and this favours more ‘risk on’. 
Daily Cloud

4hr Cloud

Thoughts: The charts are biased toward further ‘risk on’ trading so I will look for signals in alignment with that view. The Cloud charts are all currently aligned for ‘risk on’ and this is a significant event, if it continues to hold. I will be cautious, though, and wait to see that the EURX can break, close and hold above the key 108.5 level first though. I also would like to see the USDX fall away from, and reject, the weekly 200 EMA and weekly and monthly pivot levels.