USDX
Monthly chart: We have had a huge bullish, engulfing candle on the monthly chart. This suggests a major trend reversal to bullish from the bearish trend that dates back to June last year.
Weekly chart: We are moving up to an area of huge resistance at the weekly 200 EMA and the 79/80 area.
Thoughts: There might be some resistance to the continued up move at the 79/80 area. There could even be some retrace after the huge up move of last month. A 50% fib retrace of last months up move would take the USDX back to the daily 200 EMA level at around the 76 level.
Conclusion: I will watch price action on this index very carefully at the 79/80 area before looking for further LONG opportunities on USD pairs.
EURX
Monthly /Weekly chart: We have had bearish action of a break out, and down, from a symmetrical triangle pattern.
Thoughts: There is still a lot of worrying talk out of the Euro zone region.
Conclusion: I will look for opportunities to short the EUR in the pairs this week BUT will be cautious in case of any significant USD pullback.
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