USD index Quarterly and Weekly
USD index currently supported around the 4th Quarter lows, and the first Quarter will let us know whether USD Index is going to reverse towards the 2010 50% level or continue down into the Yearly lows.
Same pattern that has been occurring every month, rotation into the monthly 50% level, failure to breakout on Friday and then the trend continues down once again.
If Friday had closed above the Weekly highs & December 50% level, then I would say the USD is going to rise.
However, based on the price action it has to be back down once again next week.
AUD Monthly
As pointed out last week, the Weekly timeframe was still in November and this might have the AUD consolidating until the end of this week.
There's an October high breakout, with the expectation price is going to complete the move into the December highs (2-month wave pattern)
Next week's trend is simply based on price trading on the side of 91.43.
If above there's an expectation of a 1 week UP move into the highs.
Daily report out on Monday
Euro Monthly
Euro has completed the 2 month wave pattern during this quarter, based on the September breakout.
Next week is simply based on the price action and lower weekly open using 1.4875 as the trend guide.
GBP monthly and Weekly
The same price action in the GBP.
As we can see the Weekly close is below the Weekly 50% level but above the monthly 50% levels.
If GBP is going to move higher, the first thing we need to see is a Daily HOOK pattern back above the Weekly 50% levels, which should then lead into a higher Weekly close by Friday.
In conclusion:- i'm expecting higher prices in currencies because the USD Index has failed once again to have a Weekly close above key levels in the market.
The Key levels in currencies will be the Red Monthly 50% levels, and if above there's an expectation that the trends will continue towards higher Friday closes.
Daily reports out on Monday
