EURO CABLE & AUSSIE Advances from a SOFT USD

Equities benefits from Renewed US CHINA Trade Talks
 
The next round of talks have provided US equities a boost with the DOW at 26,130.26 up by +131.34 (+0.51%) and the NASDAQ back again at 8,009.03 up by +54.80 (+0.69%) and the S&P 500  gets a lift at 2,901.74 up by +12.82 (+0.44%) as of this writing. 
 
 
While the US Dollar Index - DXY has been relatively weak after fall in core CPI in August. As of now it's at 94.45 as the transition period from the higher opening price for the week have continued to move lower. With the USD easing off from the trade spat with China; the Australian Dollar have benefited from its weakness, while being supported by its own strong jobs data have been the strongest currency so far for the day. 
 

USD Index D/W Overlay

A Transition Period 
 
 
The Daily overlay with the weekly shows how the USD DXY transition period from the 50% FIBONACCI have resisted and from a relief bounce only to resume its decline nearing a first line of support near the 94.17/20 levels. However, this has been fundamentally motivated from the CPI report that brought weakness for the USD for now. 

EURO Overlay CABLE

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The reversal signal of a morning star formation have provided the 1st signal for a price recovery from its lows. Both European majors has the same similar pattern that realigns with the market price action. 

AUSSIE Dollar

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A Bullish Gartley Pattern is quite self-explanatory.

 
AUDUSD have found a valid base price from it 0.7085 extension low coming from the previous week's opening levels at 0.7180 and have surpass this handle trading above 0.7200 for now. The exhaustion levels called could not have come in on a better timing for the market as the AUSSIE's recovery is well aligned with the European majors likewise in the same similar state of bouncing back from their respective lows. 
 
CABLE is currently above 1.3120 and the EURO is trading at 1.1685 touching a high at 1.1700 respectively. As the BOE and ECB stance stays unchange with their policy decisions which is widely expected. This have given some relief for the European majors to breath from their lows which now serves as the base price foundation with the EURUSD at 1.1300 & a 2nd higher low at 1.1520. While CABLE remains well in similar formation from the low at 1.2660 and a higher low level at 1.2785. 
 
Thus, providing a lift back to life and pressure for the USD to continue its decline for now. As the USD would come from the lower side of its current levels before a rate hike is made would be logical instead of a continues price acceleration that can not be played out in the market. The USD correction we called it, is quite relevant and healthy moving forward as it positions itself at the lower level for the next rate increase; so to speak!    
 
Likewise, closely monitoring how all these prices relates to US treasury yields and the German Bund rate differential towards the next two weeks prior to the close of the month and for the third quarter of the year. As this would provide a glimpse of the last quarter performance of US equities. Of course, not including external forces influencing these prices such as the trade / tariff spat between the US and China.