USD Index Monthly and 5-day pattern
I'm bullish on the US dollar (Index) for a move towards the January highs.
My initial view was a move upwards, as price had a monthly close above the December highs, however price has moved back down into the 50% levels in January
If the USD gets back above the 5-day 50% level then I would look for a continuation of the trend upwards
Euro Weekly and 5-day pattern
If the Index goes up then the Euro will go down and follow my Weekly report expectation & down into January's lows
Price has reversed down from the 5-day highs on Tuesday and back below the 5-day 50% level and Weekly 50% levels
In theory the Euro should continue down.
Note:- don't fight the trend on Wednesday if the Euro is moving up from the 5-day 50% level and back above the Weekly 50% level @ 1.4409
AUD Weekly and 5-day pattern.
The AUD isn't part of the basket of currencies in the USD index, therefore the trend is completely different.
At this stage it's too early to tell which direction the AUD will take on Wednesday, but I would expect the R85 range to complete down @ 90.91.
Then the rest of the day should be defined by the pink filter level and the normal 5-day 50% level, as there is a pattern that normally occurs to retest Monday's 5-day high breakout and 5-day 50% level before any potential trend continues.
Because of the trend (rising up from the Quarterly 50% level), the expectation remains that there is a bias towards a higher Friday close.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
