The US$ received a boost on Friday from from some Yellen US rate hike comments but it hasn’t cleared all of the technical barriers in its path. Next week brings a lot of economic data, including from China, but it might take until Friday’s NFP before the US$ landscape is more clearly defined.
USDX daily: has closed the week above the 95.50 level but has not cleared the daily 200 EMA or recent bear trend line:
USDX daily Cloud: price is in the daily Cloud and note how the top of the Cloud is near this daily 200 EMA and bear trend line resistance.
USDX 4hr Cloud: price action is above the 4hr Cloud though:
USDX weekly Cloud: however price is still stuck in the weekly Cloud.
Summary: the US$ closed higher for the week and may well continue its bounce up from the 92.50 support level HOWEVER I would want to see it clear and hold above the daily 200 EMA, the bear trend line and both of the daily and weekly Ichimoku Clouds before being confident of bullish continuation. Watch how next Friday’s NFP helps to define the index.
NB: I am still away for now but things should get back to normal during the coming week.
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