The three key currency indices of the dollar the yen and the euro have all signalled significant changes in market sentiment and momentum on the slower timeframes, and in the associated chart with this post we have the daily and weekly charts for the USDX top left and top right respectively, whilst bottom left we have the EURX euro index, and finally in the bottom right comes the JPYX index for the yen.
And starting with the US dollar, bullish momentum for the currency of first reserve is building strongly with the breakaway from congestion first starting in late April and developing further as we move into May supported by the two moving averages and we are now well on the way to testing the 12,000 region once more. The weekly chart reflects this bullish sentiment also, and the 11,950 to 12,100 area of congestion is now in sight, and for sentiment to remain positive this area will need to be breached in due course, with any move through this upper price level then opening the way for further bullish momentum to develop.
Moving to the single currency and the euro, here sentiment is polar opposite to that for the US dollar, with the euro developing strongly bearish sentiment on the daily chart, and breaking out of the extended congestion phase of March and April. Here the euro index remained rangebound between 134.50 to the upside and 132.60 to the downside and adding considerable down pressure to an already bearish currency.
Finally to the daily chart for the Japanese yen and the JPYX index, and here the recent bearish sentiment and subsequent congestion phase of April, has now been replaced with increasingly bullish sentiment for the currency as the index climbs away from 8100 area and on to begin to penetrate the deep congestion phase of price action in the 8200 to 8350 region, and as with the US dollar, this is another region which will need to be breached for the current bullish momentum to continue with the index climbing further.
By Anna Coulling
We thankyou so mush ann, you are of great importance to us,,,im a newbie VPA trader and im doing well on trading…
Excelent!