USD Weekly
The price action in the AUD index is the first pattern that's showing a reversal of trend:- 2-month wave extension down into August lows and a break above the 3-day cycle.
There are two possible patterns:-
1:- this is only a short-term 2-day reversal pattern into the 3-week 50% level and the trend continues lower
or
2. Which is what I think will happen...
consolidation with a possible UP move by the end of the week and price moves back towards the 3-week highs.
Euro Weekly and 5-day patternIf the USD index is going to follow #2 then the Euro should continue lower.
However, whilst price is above 1.3101 there is a possible swing back towards the 5-day 50% level and as high as 1.3218 (resistance)
Below 1.3101 and it's down towards 1.3022
AUD Weekly and 5-day pattern
2-day reversal pattern has played out and with the price trading around .9087.
Based on Tuesday's close the market looks to be moving down into the 3-day lows and Weekly 50% level by Wednesday
5-day 50% level resistance
