The USDX remains trading within a possible ‘Bull Flag’ pattern for the time being. I’m waiting for any sign of a break out from this pattern so as to help determine directional moves on some FX pairs.
USDX 4hr:
E/U: The E/U is still trying to hold above the 4hr Ichimoku Cloud:
It is also consolidating in a technical pattern of its own under the resistance of the weekly 200 EMA whilst the USD index contends with its ‘Flag’ pattern. Any bearish breakdown on the USDX would help to support this pair:
Cable: is holding above the support of the monthly 200 EMA for now. A bearish USD index move would help to support this pair as well:
Kiwi: is still holding up near the support of the daily 200 EMA whilst the USD navigates and consolidates within its Flag pattern. Any bearish USD index movement should help to support the Kiwi:
Loonie: this has also yet to make a decisive move whilst waiting for clarity from the USD index. Any bearish USD index movement would support bearish follow through here:
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