-EURUSD upside looks limited
-AUDUSD and NZDUSD advance for 10 consecutive days, beware of a pullback
-USDJPY bearish against 99
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 77, 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 30, which indicates range / bullish potential. The break above a resistance line is bullish.
AUSTRALIAN DOLLAR / US DOLLAR
The trend index is at 81 which indicates uptrend / topping. The trend is up as long as price is above .6932. Beware of a sharp pullback as the AUDUSD has advanced for 10 consecutive days.
NEW ZEALAND DOLLAR / US DOLLAR
The trend index is at 94, which indicates uptrend / topping. The trend is up as long as price is above .5641. Like the AUDUSD, the NZDUSD has advanced for 10 consecutive days, so beware of a sharp pullback.
US DOLLAR / JAPANESE YEN
The trend index is at 64, which indicates uptrend / topping. Staying below 99 keeps bears in control.
US DOLLAR / CANADIAN DOLLAR
The trend index is at 52 which indicates range / bearish potential. Being in the center of a 6 month range, there is no directional bias right now regarding the USDCAD.
US DOLLAR / SWISS FRANC
The trend index is at 45, which indicates range / bearish potential. The USDCHF is testing support from 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
