There’s something afoot – but I didn’t have a hand in it… It started with GBP/USD that pushed higher, looked like it had a seizure and dropped lower. Seeing this, the EU followed suit – and USD/CHF moving to new highs and even USD/JPY, that had looked into the depths of Satan’s eyes and decided to join the gang.
But, and perhaps a big but, there’s no real confirmation of the dollar reversing higher. Moreover, although these are not sacrosanct, EUR/USD has penetrated the rising channel support twice – and USD/CHF above its declining channel. It’s time to be cautious and be aware of the resumption of the dollar upside…
I have already been treating the Aussie as having topped out but it’s still in a position where deeper corrections can develop – so there’s still cause for caution.
We also have USD/JPY having broken cleanly above its 4-hour Price Equilibrium Cloud, USD/CHF also just emerging from its 4-hour Cloud while EUR/USD is struggling to beat a hole in the Cloud low. Perhaps strangely, the Aussie hasn’t made much impact on its own 4-hour Price Equilibrium Cloud low – but sniffing.
I’ll add that the Dollar Index has broken above a descending channel high – but does have room for pullbacks. It has been trying to break away from its 4-hour Cloud high but hasn’t quite made a clean break.
Today should be interesting – so be ready…
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