EURX
Monthly: Have had a triangle breakout dating back to June 2010.
Weekly: A spinning top indecision candle last week.
Daily: Candle closed last week resting on top of the bottom trend line of recent triangle break.
4 hourly: Finished week just above previous strong S/R and psych level of 105 and just under weekly pivot.
Thoughts: There is some indecision with future direction on this index at this stage. I will wait to see whether price can hold above the bottom trend line. If price holds then long positions on EUR pairs may be in order. If price breaks down though then shorts on EUR pairs will probably be dictated.
USDX
Monthly: currently forming a spinning top indecision candle. A very popular candle formation of late!
Weekly: Struggled to pass the weekly 200 EMA. Another spinning top indecision candle last week!
Daily: Bounced off and down from previous strong S/R and psych level of 80. Candle closed just under the daily pivot point. Is this pause though just a bullish flag pattern in the making?
4 hourly: The last two candles were bullish after the positive NFP results from Fri of last week. The retrace it completed last week was to the 61.8% fib which was also the daily pivot S1 level!
Thoughts: We will need to see if the bullish sentiment following NFP from last weeks holds and continues to propel the USDX forward. The 80 level will continue to be a key level to watch. A break and hold above the 80 level will be a bullish sign. I will wait to see how the USDX travels before taking any trades on USD pairs.
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