US Dollar Index and 5-day patternUSD dollar index is rising up from support.
There is a 5-day breakout.
At this stage the USD index could swing back towards next week's 50% level and that will put pressure on the AUD and Euro to drop.
However, we still don't know whether Friday will continue further than the 5-day highs, and price reverses back down into a lower close, and then continues down lower next week....
But we should trade with what we see (bullish 5-day breakout rising up from support) and not what might happen afterwards.
AUD weekly and 5-day pattern.Because of the pattern in the USD Index, we should focus on 'shorting' on friday with the hope that price sells off from either the 5-day 50% level or the 3-day filter and breaks the 5-day lows, as part of a pullback into the Weekly 50% level.
Based on Friday's patterns I couldn't be trading longs...
Limit any short trading above the 3-day filter.
Euro Weekly and 5-day patternI wish I could be as confident in the Euro because of the Weekly high breakout...
However, the 3-day filter and 5-day 50% level is the trend guide on Friday.
- All Daily forex reports are written aftr 11.00am Sydney Time, which is approximately Midnight GMT
