Major Currency Pairs: Break-Even Day

Overall, Monday trade proved to be rather static, with the major pairs preparing to close in the proximity of the break-even line. The vast majority of trading had been concentrated during the Asian session, and during the U.S. trading hours, at 10 a.m. EST, after the better than expected ISM and pending home sales reads.

At that time, the dollar index plunged, but the move was later reversed almost entirely, in line with the equity markets.

Dollar Index Technical View : TheLFB Member Charts

Daily chart trend: Short. Main price points: 75.00. Looking for: Ending diagonal

Prices on the dollar index daily chart are threatening the upper line of an ending diagonal, where a breakout will confirm that the bottom is in place. In this case, a retracement into the red wave IV area will be expected, while the current lows around the 75.00 zone must hold.

The RSI indicator is showing a bullish divergence, which also indicates a change in trend direction.

The euro (Eur/Usd 1.4765) surged up to the 1.4850 area during the U.S. session, to the same place where it topped during the last few days of trade. As expected, the euro has failed to break any higher, forming a bearish pin-bar formation on the hour four chart. Right now, the pair is trading caught between the 20- and the 50-day moving averages.

Trade Plan of the Day: TheLFB Trade Plan is Aud/Usd, one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, plus S&P futures, oil, gold, and the dollar index.