Three pairs gained on the dollar, two lost ground, and one moved sideways in trade on Friday, to leave a set of dollar index component charts that have very mixed trend and momentum reads. The Daily chart trends on all of the majors are showing long-Usd, with the exception of Usd/Cad. However, all are showing technical price action that is struggling to hold the Usd selling that does hit.
Eur Daily chart is short, with 1.3600 the main price point, the 4 Hour chart is short, with 1.3350 the main price point.
Gbp Daily chart is short, with 1.5100 the main price point, the 4 Hour chart is short, with 1.4900 the main price point.
Aud Daily chart is short, with 0.9150 the main price point, the 4 Hour chart is long, with 0.9100 the main price point.
Cad Daily chart is short, with 1.0250 the main price point, the 4 Hour chart is short, with 1.0220 the main price point.
Jpy Daily chart is short, with 1.5100 the main price point, the 4 Hour chart is short, with 1.4900 the main price point.
Chf Daily chart is long, with 1.0650 the main price point, the 4 Hour chart is short, with 1.0650 the main price point.
The trading patterns are revealing a main swing point that is being put in place, that although may take time to form, looks to be setting a solid area of support on the dollar index. Attention will now focus on the ranging Daily chart set-ups that could potentially offer substantial runs, and to then compliment that with 4 Hour intra-day charts set-ups that may offer some contrarian trades as the major pairs move in varying directions in-line with macro-economic news releases. Signals will follow as this all unfolds.
Traders have to be aware that European markets move to daylight savings time on Sunday, and therefore the European futures price move now goes back to 2am ET, and the Chicago reaction to London oil, gold, and LIBOR rates gets back to 6-7am ET. The other variable this week is that U.S. Non-farm Payroll numbers are released on Friday, into a global market that is closed.
The same thing happens next Monday, when U.S. economics are released as most regions are again closed, for the 4-day Easter bank holiday that the U.S. does not celebrate. This may cause chaos in regard to price action, especially if the U.S. releases are much better, or worse, than expected. Outside of the bank holiday times, the economic calendar is very quiet this week, but that really could be the ultimate in calm before-the-storm moves.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com