The USD has been pushing higher recently, but we still can’t get a clear test of overhead resistance.

Overnight US equity markets where mixed despite more positive headlines from China on the fact that they are looking at ways to open up their economy and markets to foreign investment.

There will be more market-moving news from China out shortly as we get a look at their industrial production data. This is clearly taking on some importance at the moment, given the state of the trade wars and the impact it might be having already.

This morning we are already seeing the commodity currencies get sold off hard as we await the data.

The USD Outlook

The DXY remains just below the resistance level at 97.50 and we have pulled back into support.

For now 97.00 is S1 with R2 at 97.70-80 while S2 remains at 96.00-20.

It could be argued that we are looking at a bit of an ascending triangle pattern, with higher lows, which might just be pointing to a breakout to the upside.

But I’m still neutral at the moment as we wait on further developments from China.