USD Dollar indexUSD dollar index has November low support and now trading above the 5-day 50% level.
The more this rises the more pressure it's going to put on currencies, and as pointed out in the weekly report, there is a pattern that often see the last week of the month rotate back towards the monthly 50% level.
However, the Weekly 50% level is the key, as price can easily move back below the 5-day 50% level on Wednesday because of Tuesday's failure to close above.
AUD Weekly and 5-day patternYesterday I wasn't bearish because of the price patterns in the market and I was hoping to see AUD hit the Weekly highs once again.
Looking at the price action AUD can continue higher, but around the spiral filter @ 93.20-27 might see a 4 hour resistance pattern that pushes the SPI back down 41 pips until GMT/USD time zone.
If price reverses down 85 pips and is trading below 92.66 that might see more selling on the AUD towards the Weekly 50% level and more.
Euro Weekly and 5-day patternEuro is currently supported around higher timeframe 50% levels, but trading below the spiral filter 50% level and also the spiral high.
Therefore there are conflicting patterns.
The trend guide is simply going to be defined by 1.4892.
if it's a spiral high and pushing downward and the USD index is rising, then Euro can begin to break key levels on Wednesday.
Personally I would have preferred AUD and Euro hitting the Weekly highs this week and using those upper levels as resistance.
Therefore at best these R85 highs in both the AUD and euro are only seen as 4 hour resistance and 41 pips resistance ,which may or may not lead to larger trend reversals.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
