The US$ index has closed higher for the week BUT the low levels of momentum across both the DXY and EURX make this move rather questionable. Forex traders need to keep an eye on momentum and wait for any uptick before there can be much conviction with any trend line breakout movement. The three Central bank rate updates scheduled this week might help to increase momentum.
DXY weekly: a bullish weekly candle but note the absence of momentum:
DXY daily: no momentum here either:
DXY 4hr: declining momentum on this time frame:
EURX weekly: a bearish weekly candle but note the absence of momentum:
EURX daily: no momentum here either:
EURX 4hr: watch for any momentum breakout:
FX Index Alignment: the FX Indices are newly aligned for risk-off:
- EURX: is below the 4hr Cloud and below the daily Cloud so aligned for SHORT EUR$ price action.
- USDX: is above the 4hr Cloud and above the daily Cloud so aligned for LONG US$ price action.
Calendar: Note the three rate updates: BoJ, FOMC and ECB: