Another good week :-)

This week was very interesting too.
EUR/USD hit new high - 1.38.42.
The EUR/USD bears made money, the bulls made money too. We hit 100% profit, then we had some lost (unclosed), so profit now is about 90-95% (could be less).

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I. Wedge in USD index.

USD index forming a wedge, and broke below support level. I think this is false break and USD index will bounce very soon from the support, see the EUR index and EUR/USD below.

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II. EUR (XEU) watch.

The EUR index forming a wedge. Because USD index is dominated by EUR currency and EUR index is dominated by USD currency, this wedge is corresponding to the wedge in USD index. In fact chart is almost opposite.

It still not reached the resistance yet. However, it is too close to the resistance, so it may begin to fall any moment now.

The ratio between EUR index / USD index shows same wedge again. The wedge is completed, and fall may start any moment.

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III. Wedge watch in EUR/USD.

EUR/USD 4 days chart:

This chart is similar to weekly chart. There are same wedge. The wedge is not completed. However, EUR/USD hit new high - 1.38.42. This is probably enough for the wedge, and now price must begin fall to the target price of 1.34.00.

EUR/USD 8h chart:

A rising channel, but resistance is just above (not shown)

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IV. Summary.

EUR/USD will begin to fall.

Check previous week EUR/USD view here, because the situation remains the same.

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V. AUD/JPY watch.

AUD/JPY went to upper boundary of the wedge, and currently dropping to ~105.60. Probably it will bounce from the support.

Is too expensive to play against AUD, and now we need to wait the fall, and then we need to check if is too risky to play the raise of AUD.

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Happy week and happy trading :-)