The US$ index has made its first weekly close below the key 100 level since November last year and this is a bearish signal. The weaker than expected wages component of NFP seems to be undermining confidence about the intended pace of future US interest rate hikes. I’m watching the 100 level to gauge the next directional move with the index.
USDX daily: the 100 level was offering support to the index but this has now turned into resistance. Watch this level for any make or break in coming sessions.
USDX daily Cloud: As with the 100 level, the daily Cloud has now turned into resistance as well so watch the bottom of the Cloud for any make or break in coming sessions.
Bearish Target? I have added Fibonacci to the most recent swing high move to help identify potential bearish targets. I note with interest that the 61.8% fib ties in with the top of the weekly Cloud so that’s confluence enough for me. This region is near the 96.50 region and so I’ll be watching for any bearish follow through to potentially target that region:
US data: the calendar is pretty light next week, especially by comparison to the week just gone.
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