Both FX indices remain trapped in Flag patterns and they’ve been like this for around three months now. So, if you’ve been struggling to find some decent trends with your FX pairs then that is probably why. FWIW: I don’t see the return of any decent trending FX markets until one or both indices breakout from their Flags.
The US$ and stocks have retreated on the back of concern about the progress of US Tax reform and this has helped to trigger some new TC signals.
The US$ is shaping up to print another indecision-style weekly candle with a small real body. If you’ve been struggling to find some decent FX moves then this might be why. The USD-based FX pairs have moved little this week and, with the US holiday on Friday, there might not be much more to come for this week. Next week brings USD CPI and Retail Sales so maybe this, or Trump Asia Tour news, might get the US$ moving. Until then, keep an eye on the Cross pairs, especially the NZD pairs following the RBNZ rate update.
There hasn’t been a lot of movement on the USD-based FX majors I’m watching but a couple of the cross pairs have given decent trades. The same can’t be said of the ASX-200 though, the Aussie top 200 stocks, as this index closed yesterday above the psychological 6,000 level for the first time since January 2008.
I’m back from holidays and slowly getting back into charting. There seem to be plenty of FX trend lines to monitor for potential breakouts this week, a fact which is rather pleasing.