As we approach the U.S. Thanksgiving Holiday price action will likely begin to slow a bit. We may start to see some irrational moves and very short-term trades. Also the market tends to want to rally into Holidays, but there are certainly enough pressures to keep the markets from doing so or at least limit any rally.
The ES has rallied in the overnight session and may have completed a minor 4th wave correction. A push above the overnight highs would extend the correction but should be limited. We are expecting another push to the downside before a reasonable correction takes place. The price levels of 1186 and 1178 should offer as support in the near term.
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ES 4Hour Candle chart
The USD Index finds trend line support. Let’s see if price action can bounce higher to get our minor 3rd wave. If not, and price action breaks through the trend line support then there is reason to be concerned in the short-term.
DX Hourly Candle chart
The EURUSD seems to be the mirror opposite of the DX. Price action hits up against trend line resistance and should push lower in the near term. A break above is reason for short-term concern.
EURUSD 4Hour Candle chart
The AUDUSD may try to make one more push lower before a more sustained retracement higher. Our bias remains bearish.
AUDUSD Hourly Candle chart
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