US Dollar indexAugust 50% level resistance and if price continues down then other currencies will rise
AUD Weekly and 5-day patternAUD moved into the Weekly 50% level and has closed around the 5-day 50% level.
Normally I would look at this pattern and say....
Price has retested the breakout with today's higher daily close, and because it is a higher Weekly open and a Higher Daily open below the 5-day 50% level, then the trend should continue down over the next 2 days. (lower Weekly close)
However, because of the USD index if the AUD is above the 3-day filter on Thursday then I can't discount a rally towards the August highs over the next few days
Euro Weekly and 5-day patternEuro looks more orderly with price support above the higher timeframe 50% levels.
Currently trading below the 5-day 50% level.
If the Euro is above the Yellow filter on Thursday and above the 5-day 50% level, then a move towards the 5-day highs is a probability pattern...
And August highs by Friday.
Trade on the side of the Yellow filter
Below the Red 3-day filter on Thursday and it is more likely a lower Weekly close on Friday
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
