US Dollar Weekly Report – 28 May 2024
USD UPDATE: EUR/USD (Daily)
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The illustrated view of KL downside to SA1**, followed by gains to R3, remains valid. This should be part of the larger R3/SA1** consolidation phase.
- The PQ defined gains seems corrective, supporting the interim view of downside off the R0/R1* resistance area to SA1** . This move will likely complete the KL formation.
- Important SA1** support is expected to hold during KL defined downside, followed by meaningful gains back to R2 and R3.
- The negation level for the expected bear phase is at R1*. This will pivot the market to larger bullish potential to R2
Target and re-assessment levels
| Important levels | SA1** and R1* |
| Primary trend | Gains off SA1** to R2 and R3 |
| Monthly Range | K/L |
| Prevailing trend | Downside off R1* to SA1** |
| Technical rating | Medium |
USD UPDATE: USD INDEX (Daily)
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General view: The illustrated WXY downside that started at point 0 remains valid and should be followed by final downside to S4.
Medium term: The PQ flag formation is forming phase X of the WXY downside. Overlapping price action within PQ, as well as the current KL channel supports the general view.
- The current Z range seems like a flag continuation pattern, as part of the larger upside to K and P to complete X.
- A break below S0* will activate the downside.
Note: Many interim alternatives remain possible and the view is of medium to low conviction.
Target and re-assessment levels
| Important Levels | P* and S0* |
| Primary trend | Downside off K/P* to S4 |
| Monthly Range | K/L* |
| Prevailing trend | Final gains to R1 and K |
| Technical rating | Medium to low |
USD UPDATE: USD INDEX (5 Hour)
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The general view of gains to R2*, followed by a bear trend to T1, is retained.
- Overlapping upside from the bottom at S3 supports the view that it is a correction in a larger bear trend (see daily analysis).
- The current ZX consolidation is also corrective and potentially phase D of the ABCDE interim bull phase to R2*. A break of Z will activate the upside potential.
- Below S1* will neutralize phase E upside and pivot the market to a more interim bearish bias. R2* is the bullish level that needs to hold.
- downside.
Target and re-assessment levels
| Important Levels | R2* and S1* |
| Primary trend | Gains to R2*, followed by downside to S3 and T1 |
| Weekly Range | Z/S1* |
| Prevailing trend | Gains off S1* to R0 |
| Technical rating | Medium |
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Red Line: “Roadmap” – A visual representation of proba-ble future price action. A perforated red line suggest various proba-ble outcomes with the perforated line being
Blue Line: Trend Lines that constitute important sup-port / resistance or break levels
TA – Target area
MA – Moving average
R – Resistance
RA – Resistance area
MR – Minor Resistance
MS – Minor Support
MTR – Medium Term Resistance
MTS – Medium Term Support
SA – Support Area
S – Support
T – Target
* or ** – Significance of level