Short-Term Bottoming of USDX

The USDX appears to have formed a short-term bottom just above 80.  As mentioned in yesterday's post, the 80 level should offer some near-term support, although on a wkly chart, you can see that the USDX is not oversold just yet.  W/ the EURUSD closer right now to its Jul-present uptrend support line, the GBPUSD showing signs of fatigue following its surge above its Jun-present channel resistance, and the USDJPY bottoming nicely on its daily, the USDX should have decent upside going into next wk.  Although the NFP is most widely anticipated # this wk, any signs of a breakdown in the EURUSD below its month long channel support or a further confirmation of bottoming action on the USDJPY will trigger my trades before NFP.  It has been observed in the past that the NFP is a non-event relative to the economic #s preceding it by a day or 2.  One idea is to scale into the USDJPY, w/ 1 long initiated today, and another following NFP.  I'm currently waiting for the hrly MACD on the USDJPY to be closer to its positive crossover before going long, w/ the understanding that the 5min chart has provided a shorter-term buy signal. 

The order of the trades being contemplated is: long USDJPY and short EURUSD.  The EURJPY may be a short when risk aversion rises again (and can coincide w/ a rise in the USDX).  Better than expected US figures tonight will confirm at least the entry on USDJPY, and quite possibly the EURUSD.  The GBPUSD short idea will need to await further confirmation (i.e. testing of its Jun-present uptrend support).