USD IndexUSD dollar index and change of trend is going to push currencies lower.
It's the first change of trend in 9 months, and the index should continue to move towards the December highs.
Once that occurs there are two patterns in play....
Price can continue higher in the first Quarter towards the Yearly 50% level.
Or price is going to hit the 50% level and December highs in the 4th Quarter and then continue down in the first Quarter.
In the mean time the short-term trend is expected to continue upwards.
AUD monthly and Weekly
AUD has remained in a tight trading week, and next week's 50% levels are the key for any direction change.
If Monday is below the Weekly 50% levels, then it could be a good idea to hold positions for a move down into December's lows.
If price is breaking the 3-day cycle high, then AUD remains well supported in the 4th Quarter.
We just need to see the December 50% level fail
Euro Monthly and Weekly
This week saw major support levels break and the continuation down helped by Friday's 5-day 50% level rejection pattern.
At this stage i'm expecting the trend to continue down.
GBP Monthly and Weekly
GBP trading below the December 50% levels, and price should continue to move lower.
