-EURUSD support at 1.3330/70
-AUDUSD support at .6840
-NZDUSD support at .5530
-USDCAD nears support line
About the DFX Trend Index
The DFX Trend Index ranges from -100 to +100 and is updated everyday at 5 pm eastern US time. On the charts, bars are painted blue if the index is above 50 (uptrend) and red if the index is below -50 (downtrend). Readings between -25 and +25 result in a green bar to indicate that price has reversed to the mean. The spreadsheet shows the index values for the last 15 days.
50 to 100: uptrend / potential for a top increases the closer the index is to 100
25 to 50: in a range / bullish potential
-25 to 25: price has reversed to the mean
-50 to -25: in a range / bearish potential
-100 to -50: downtrend / potential for a bottom increases the closer the index is to -100
EURO / US DOLLAR
The trend index is at 72, which indicates uptrend / topping. There are multiple levels of resistance ahead. 1.38 is Fibonacci resistance, 1.36-1.3960 is the first of year (FOY) pivot zone, and the 200 day SMA is at 1.39. While additional upside is possible, the bulk of the rally from 1.2475 is most likely complete.
BRITISH POUND / US DOLLAR
The trend index is at 38, which indicates range / bullish potential. The break above a resistance line is bullish.
AUSTRALIAN DOLLAR / US DOLLAR
The trend index is at 75 which indicates uptrend / topping. Today’s decline may be the beginning of a larger pullback. Staying below .7045 keeps the AUDUSD on course towards .6840.
NEW ZEALAND DOLLAR / US DOLLAR
The trend index is at 90, which indicates uptrend / topping. Staying below .57 keeps the NZDUSD on course towards .5530.
US DOLLAR / JAPANESE YEN
The trend index is at 59, which indicates uptrend / topping. Staying below 99 keeps bears in control.
US DOLLAR / CANADIAN DOLLAR
The trend index is at 34 which indicates range / bearish potential. Being in the center of a 6 month range, there is no directional bias right now regarding the USDCAD. A drop below the line drawn off of the November 4th and January 6th lows would warrant a bearish bias.
US DOLLAR / SWISS FRANC
The trend index is at 52 which indicates downtrend / bottoming potential. The USDCHF is testing the 200 day SMA. The decline may be nearing an end and support extends to 1.0925 (Fibonacci).
Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.
Please send comments about this report to jsaettele@dailyfx.com
