USD continuing to slide

Take a look at the DXY chart

So the other aspect to tonight's euro theme, is what the USD is doing.

If you are following along, you'll remember that I started the week with a look at the US dollar index (I'll find the link after I publish) and highlighted the fact that after being on a bullish tear throughout 2018, it has now reached resistance on the daily which is being respected.

Take a look at the daily:

You can see there that price has been respecting that level and looks to be forming some sort of ascending triangle pattern.

This sort of pattern is a perfect illustration of supply and demand in play between buyers and sellers. Each higher low formed, you see the sellers being soaked up until there are none left and the only way for price to go is up.

Zoom into the hourly:

This is your word of caution:

There are a few ways to draw this trend line and on the daily, in an index like this, you shouldn't be using specific levels to trade breakouts. They should be treated as zones.

Don't get carried away too early!