USD Index and 5-day pattern
August 50% level resistance and Weekly 50% level break. Expectation now is that the USD indexes will continue down whilst currencies will move upwards.
However on Thursday, I would expect price to retest the Weekly 50% level and 5-day 50% level before heading lower on Friday.
That retest could be a test and reject pattern today and continuation down into a lower Daily close...
or it could be a higher daily close and then price moves down the next day.
AUD Weekly and 5-day pattern
Because of this price action and the price action in the AUD the bias is to move higher...
but it needs to be trading above the 3-day filter.
If the USD index is moving back into the 5-day 50% level then there can still be early 'selling pressure on the AUD:- R41 pips or 4 hour resistance.
Euro Weekly and 5-day pattern
Euro bias is to continue higher, but the ideal pattern would be Thursday to retest the Weekly 50% level @ 1.4182 before heading higher.
Note:- Support and trend guide is the red 3-day filter.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
