USDOLLAR Index Nears Flag Top as EUR/USD Loses Triangle Support
- EURUSD slips below triangle swing low of $1.0890/95.
- USDJPY creeping back towards crucial resistance at ¥124.60/65.
After a rather passive start to the week economic-data wise, event risk should pick up quite considerably over the next three days, starting with today's duo of significant economic data. Of note, the combined outlook the US ADP Employment Change report and the US ISM Services index Employment subcomponent can provide the markets should be thorough enough for traders to get a strong indication of where Friday's US Nonfarm Payrolls report will land.
Accordingly, ahead of Friday, the USDOLLAR Index, which has already shifted back into the topside of its recent bull flag consolidation, may be eager to press a topside breakout in an attempt to retake the April highs. With H4 indicators returning to bullish territory (daily and weekly Stoch and MACD already in positive territory), momentum may start to gather pace (what we call "full timeframe continuity") should recent swing highs near 12063 give way.
See the above video for technical considerations in EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and the USDOLLAR Index.
--- Written by Christopher Vecchio, Currency Strategist
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