USD Index
August 50% resistance and USD index aligning with the Weekly 50% level.
Just by looking at this price action I would think the Dollar will be under pressure and other currences will rise, as price moves back down into the lows.
5-day pattern
However, The Index has come down and retested the 5-day breakout from last week and has closed back above the 5-day 50% level.
This is normally a 'bullish setup', as it's verified the breakout but now closed above the 5-day 50% level, but it needs to be verified with price above the Weekly 50% level.
either price continues down next week, but ends the break the 5-day lows again...
Or if price is rising upwards from the Weekly 50% level, this could lead to more upside and a higher Weekly open.
This will put pressure on other currencies.
Aussie DollarMajor support around the Weekly lows and the Weekly 50% level & Quarterly 50% level @ 81.40.
Bearish pattern is a 5-day low break below those levels, which is part of the USD index moving upwards.
If that's the case then there is an expectation that price is moving towards a Friday close away from the Weekly open, but at this stage we don't know whether price will break lower, as the price action favours an UP move.
The EURO looks like it will rise upwards from the Weekly 50% level and continue upwards....
Unless price opens below the Weekly 50% level next week then the Euro could be under Weekly 'selling pressure' towards the Quarterly BP @ 1.3734
