The USDJPY is in a triangle pattern and today’s lows coincided with the trend line that has been established all of 2018 (blue line).
The AUDJPY broke higher above the 38% retracement and now targets the 61.8% retracement near 85.50 with a bull flag formation supporting the move higher.
The SPX500 closed the week above the downtrend line and the 61.8% Fibonacci retracement level which was a bullish sign headed into the weekend.
The US Dollar Index, or DXY, is at triangle support after nearly testing the 61.8% long term retracement the last couple weeks.
The USDMXN has broken lower out of an ascending wedge, and what makes this potential so good for shorts is the RSI has also been divergent on the last move higher the last few weeks.
The Swissy (USDCHF) may be setting up a bear flag pattern after the rebound from the 38% retracement of the September low to the November highs.
One of the most dangerous mistakes a trader can make is “catching a falling knife.” Or when prices continue to drop to look for places to be long.
The GBPUSD looks to be in a long term consolidation that may carry us through December as the UK parliament will vote on the BREXIT deal ahead of the Christmas holiday.