The DXY is holding on for the time being and had its best week in some months. The US jobs data was better than expected so there was no flight to safety run into the US$. However, the weekly candle could still be viewed as a range-bound indecision style candle and it has failed to reclaim a recently broken multi-year support trend line. So, there is still a lot of work to do before much can be celebrated here. Next week bring the ECB rate update so watch to see if this impacts the DXY at all.
NFP: better than expected on the headline jobs figure and wages:
DXY weekly: a bullish coloured weekly candle but with a Spinning Top indecision look. Note how price remains below the 10-yr support trend line that will now be some resistance:
DXY daily: note the converging DMIs and declining ADX:
DXY 4hr: price action is still shaping up in a bullish-reversal descending wedge so watch for any momentum-based trend line breakout:
EURX weekly: a bearish weekly candle almost engulfing the previous bullish candle:
EURX daily: note the converging DMIs and declining ADX here as well:
EURX 4hr: watch for any momentum-based trend line breakout:
FX Index Alignment: the FX Indices are not aligned at the moment.
- EURX: is in the 4hr Cloud but above the daily Cloud so currently not aligned and prone for potential choppy EUR$ price action.
- USDX: is above the 4hr Cloud but below the daily Cloud so currently not aligned and prone for potential choppy USD$ price action.
Calendar: Note that Monday is a holiday in the USA and Canada and there are BoC and ECB rate updates on Wednesday and Thursday respectively.