The us dollar index has left an over and under pattern following the aftermath of NFP. Played right this pattern is as close as you can get to a holy grail.Moreover Trump is cracking down on regulatory issues that had wall street tied down for the better part of this decade.
The over and under pattern is an accumulation pattern and so to say a slow cook on higher TFs. The anatomy is fairly simple. It starts with a low&high–>fresh low&high–> return to original low and anticipation of a topside breakout.
Friday’s news was unable to breach this supply zone, with continued medium term slow data from the EU it is likely this supply zone will hold and open up price toward 1.06
Australian dollar has been extremely resilient and improving data is helping a lot. The RBA is likely to stay put on their monetary policy and refrain from talking down the Australian Dollar following Trumps warning on currency manipulation. On the other hand GBP suffered its first set of bad data following Brexit and consensus is that it’s likely to continue. The supply zone above could offer a trend resumption entry.