Last week began with a breakout of the USDX from a bullish flag pattern (see daily chart). Technical theory here states that the breakout should be equivalent to the height of the flag pole. The flag pole was about 290 pips. Thus, the expected target of this bullish move would have it reach up around the 80 level.
The USD is still looking bullish on the weekly chart as well and finished the week by pausing at the daily pivot level and just under the weekly R2 level. It is approaching some strong resistance at around the 80 mark with the weekly 200EMA and pivots lurking in the area.
Summary: The USDX looks poised for some further up move to at least the 80 level. Thus, I will see how the index opens next week and use this a guide to look for possible long USD trades.
The EURX is drifting within a symmetrical triangle on the weekly chart. It is also trading under a bearish trendline on the daily chart dating back to late last month. This index looks bearish which is hardly surprising with all the EURO land problems.
Summary: The EURX looks poised to break out of the triangle pattern, either up or down. I will watch which way this moves to help determine direction for EUR trades this week. A break out and down would guide me to look to short the EUR.