USD Index and 5-day pattern
USD Index is trading at the August 50% level along with price stalling at the 5-day highs.
Based on this pattern, I would look for a reversal back down into the 5-day 50% level.
If the US dollar is going to go lower then Tuesday needs to close below the Weekly 50% level and continue down from Wednesday.
At this stage Tuesday is an each way bet on the direction, however I do favour a down move.
This price action is important, because if that happens then it favours my view of a HOOK pattern in the Euro... (higher Friday close)
AUD Weekly and 5-day pattern
Based on the Price action in the AUD, there isn't any probability on direction and it continues to look choppy.
Price will most likely continue down into Tuesday's lows (5-day lows)
Euro Weekly and 5-day patternThere was an expectation that the Euro would move down on Monday because of Friday's breakout.
As per Weekly report, if the Euro is going to swing upwards this week, then Tuesday needs to have a daily close above the 5-day 50% level, and this should form a 'HOOK' bar for Wednesday to move higher.
Therefore the critical level on Tuesday is going to be the 3-day filter (yellow), and a 4 hour close above this level, which might not happen until GMT trading or USD timezone later today.
This price action will align with the USD index reversing down from the August 50% level and Tuesday closing below the Weekly 50% level
- All Daily forex reports are written aftr 11.00am Sydney Time, which is approximately Midnight GMT
