USD Index
USD index didn't continue down, as part of the next leg downward....
Instead Wednesday has move upwards, and if we follow text book patterns, then the Weekly highs are seen as resistance....
and if the trend is going to continue higher, then we look for a minor reversal pattern downward into support for another leg upwards next week, as described in the book.
Those patterns in the Index will have a bearing on how currencies trade over the next 5-days.
Euro Weekly and Daily
11am sell down, and Support failed, resulting in a 5-day breakout and a continuation down during the 2nd 12 hours.
Based on the current price action, my view is that the euro will move down into Thursday's lows....
And if the Index is going to reverse down, then we look for 2nd 12 hour patterns that can result in a higher daily close.
AUD Weekly and Daily
11pm selloff, and a move down into Wednesday's 5-day lows.
My view is that the AUD will move down, with the 5-day 50% level providing resistance.
Don't short trade above the 5-day 50% level, but the Weekly 50% level is also see as resistance if the first 12 hours moves upwards
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
