The DXY was our chart of the day last week and it is back in focus today.
The DXY recently came out of an ascending wedge that had developed for the last couple years. Currently, we have a bear flag setting up which points below the 97.00 level.
The EURUSD closed at the downtrend line of the descending wedge that has captured the low volatility of the pair for the last couple years. Today, we tested that resistance near the 1.1140 level.
The big rejection at the 108.50 level came following the very poor ISM Manufacturing data yesterday as the pair slid into key support today at the 107.00 level.
An ascending wedge is a bearish setup by definition. However, the instrument is not actually bearish until we break the lower trend line of the wedge.
The EURUSD looks set to test the 109.00 level overnight, but traders should be aware of the longer term descending wedge which has held as support since 2017.
The USDJPY stalled at the 50% retracement of the May highs to the August lows.
The USDNOK faces a rate decision where the Norges Central bank is set to meet and possibly hike rates! Analysts are about split whether or not we get a rate hike, so whether they do (or not) and the follow up guidance could spur the next move.
The EURUSD found support ahead of the 161% extension of the May lows to June highs near the 1.0920 level.