Swing-Time On The Usd Index

The 4-Hour forex charts are setting up with short-Usd reversal signals, which although most are against the overall trend they could be pivotal if global equity markets hold support.

The fist to trigger was Usd/Cad short, and once we can see a daily close underneath the 200 SMA at 1.0450 will be a solid reversal play.

Aud/Usd will be next to signal if support at 0.8250 can be held on a Daily chart close. Usd/Chf signaled in the previous session but the intra-day volatility in CHF at the moment negated the potential. Both euro and cable have literally just signaled long, but will need to close the U.S. above 1.1975 and 1.4490 to confirm a swing change.

The major currencies have been empowered by global markets that have pushed S/P futures trade through 1065 and have set up a test of 1075. If Wall Street can hold above 1075 on the S/P, forex pairs will start the reversal of recent Usd buying. The dollar index has dropped under 88.00, and looks to now have an easy ride down to the 87.00 area where it consolidated in the first few sessions of June.

The short-Usd signals are against the trend, and therefore will require reduced exposure and targets that are banked early on the initial breaks.