USD IndexThere is still the expectation that the USD index is going to continue towards the MAY highs, which should continue to put pressure on currencies in early MAY.
As long as price remains above the MAY 50% level
Once price completes the MAY highs there are a number of higher timeframe resistance levels:- 3 month highs and 3-year 50% level
Euro Monthly and Weekly
Break and extend pattern complete from the January breakout into the April lows.
However, the last week reversal pattern upwards has limped back into the monthly 50% levels in MAY
At this stage the MAY 50% levels are seen as resistance, but that might change once the USD index reaches the MAY highs.
GBP monthly and Weekly
GBP has support around the Weekly lows, but what we need to keep an eye on is the Weekly 50% level next week and the MAY 50% level.
This is either going to set-up a rejection pattern downard into the MAY lows and a break of the 3-week lows will verify that.
An up move is a possibility, however I'm not bearish on the USD Index therefore my view is a push down using 1.5306 as resistance.
5-day 50% level @ 1.5295
AUD Monthly and Weekly
Trend guide the Weekly 50% level....
My view at the start of the 2nd Quarter was a move towards the 2nd Quarter highs @ 98 cents, but only if price moves down into the 3-month 50% levels first:- test support
That might happen early next week.
