US Dollar faces Reversal after FED Minutes suggest further QE

Weekly USD/JPY shows under the Long term Support line - there is possibility for a fake downbreak unless BOJ walks out of it..

Daily USD/JPY shows clear down channel that meets the trend line Support at this critical junction - my test scenario suggests we go for 84.

Nice horizontal Range withing the Rising Trend Channel in 4-hour EUR/USD - so we test 1.4 before we break lower or we see a failure right here?

Same case in 4-hour AUD/USD - Trend lines suggest we go for a test of 0.99 before a significant Resistance kicks in. The surprise will be an outright break here.

US Dollar Index looks like bottoming and yesterday candle resembles a Bullish Engulfment, however today's candle is not a good confirmation sign..

Momentum and RSI suggest we bounce off the Lows which are significant on the long term charts around 77 level and my guess is we see a wave of USD buying after the FED announced its blur willingness to ease further its policy.

US Dollar Index nearing a Reversal

I bet we reverse at this level near here at least for a short term reaction to the overstretched trend.

Price action observations & trading system contemplations

Trending and over extension of the move doesn't compromise the trend momentum.

Different time frames and fibs - now that moves exceeded the conservative projections I focus on the momentum concept as it is very insightful to learn never to fight a roaring trend and always let it go until you see a rising volatility, reversal chart pattern or some other sign of trend weakness.

Some observations on using the 13-MA in a trend.

I have drawn the consolidations that follow the price thrusts. Clear Support & Resistance levels are shown.

Time & Price relationship.

MAs are enveloping the unfolding trend but they lag and this actually helps to project a horizontal range trading after the motive wave until the MA makes up the space and then the trend move ensues.

Shanghai Composite - Momentum Buy!

China is on the move up - trend momentum is rising and RSI is converging. Once 2700 is cleared we target the 200-DMA.

EUR/USD Fibonacci levels to watch

Well who says Fibs don't work? LOL.

EUR/USD at 1.26 nicely bounced off the 50% level (1.1869 - 1.3344).

Now that we have breakout of the 1.3344 high we focus on 1.35 which is the 50% of the bigger 1.50 - 1.186 move.

Currencies Breakout versus the US Dollar

AUD/USD broke above psychological 0.94. Now in uncharted territory we can't really force a target - the Channel top gives a notional 0.9550 cap on the breakout move.

EUR/USD broke above 1.2920 and trading above 1.30 now. Trendline comes in 1.3050 but significant focus of the market will be attracted by the flat Resistance converging with the 200-Day MA at 1.3286.

GBP/USD has been a weak link especially on the crosses reflecting the global imbalances like GBPAUD and GBPCAD.

GBP/USD is trading above the 1.55 BOX top with immediate targets at 1.5580 and 1.57.

Volatility is making new lows but Bond Yields are turning

10-Year Note is making Bullish Engulfing pattern with low at the 50-DMA Support.

So we look for confirmation on the upside.

10-Year Yield made a Bearish Engulfment right at the 50-DMA Resistance.

ROC is in overbought territory but RSI is just signalling a bullish trend so a confirmation on the downside is needed as we saw the same situation above in the underlying bond price.

Volatility broke to a new Low as complacency seems to win over fear and markets are managing to run higher. My guess is we break out of this state of mind very abruptly but in timing we must be canny so I'd watch for a close above the Horizontal line.