US$: bullish reversal candle ahead of FOMC.

The US$ remains pegged by 92.50 resistance but printed a bullish-reversal ‘Inverted Hammer’ candle for the week. There is FOMC this week and so this might help to decide the fate of the next move for the index.

USDX: the index printed a bullish-reversal ‘Inverted Hammer’ candle for the week but remains pegged below 92.50 and still within a daily chart Flag (Bear Flag?).

Recall: the US$ longer-term uptrend remains intact until such time as it breaks and holds below the 61.8% fib of the 2014-2016 weekly swing high and this level is down near 84.50.

Also, keep note of the fact that the Fibonacci retracement on the weekly swing low move, since the start of 2017, still has the 61.8% fib level up near the previous S/R level of 100. I will be watching this 100 level if there is any recovery move.

Keep watch of the following levels in coming sessions:

  • the weekly 200 EMA.
  • the S/R level of 92.50.
  • the daily chart’s Flag trend lines.
  • the bottom trend line of the weekly chart’s symmetrical wedge pattern.
  • the longer-term weekly swing high 50% Fibonacci level; down near 88.
  • the longer-term weekly swing high 61.8% Fibonacci level; down near 84.50.
  • the recent weekly swing low 61.8% Fibonacci level, up near 100; if there is any recovery move.

EURX weekly: The EURX printed a large bearish weekly candle and has broken a support trend line that’s been in play for the last 6 months. However, traders need to watch that this doesn’t form up into a Bull Flag consolidation pattern so watch the weekly-chart Flag trend lines here for any new breakout. Also keep in mind that this is just the 5th bearish weekly candle out of the last 22 weeks.

Recall: This index has been in a long uptrend and a pause or pullback would not be out of order here, even if there is to be a longer-term recovery move. I note the 61.8% fib of this recent swing high move is back down near previous S/R around 101.5 and also near the weekly 200 EMA so this would be in focus if there is any correction move to the downside:

Calendar: there isn’t any high impact EUR data but there are a lot of EUR PMIs and, of course, the all-importnat FOMC to monitor next week (set at GMT +10):