Good Day,

The USD is on the cusp of a breakout at the moment, or, a rejection at 81.02 which is resistance on the USD index.

It is a Friday...so do not get too carried away with matters. We have seen some continuation moves this week, with the EUR/USD continuing its move lower and the cable being dragged along for the ride. The NZD/USD after a rate hike has pulled back and looks like it is going to drop lower at least to 0.8500.  Given the EUR move, the pressure should be on the USD index to break higher. My only reservation is the slow bring higher in U.S. equities and I see the 2,000 number as a target for the S&amp;P. Maybe, we have to break this before we stop moving higher....who knows?

However, there is nothing written in tablets of stone to say that the USD Index cannot break higher and equities move up at the same time.

Looking at the currencies. If you are not yet long the USD/CAD it is now above 1.0750 and looks like it wants to flex its muscles higher.

I am looking at the USD/CHF to get long 0.9035 is now being taken and I am considering entering long.

As I mentioned earlier I have added to my NZD/USD short and below 1.3420 I will add again to my EUR/USD short.

Just to confirm, tomorrow will be the last "DRIVE THRU" blog until September 6th, but I am around next week and will be tweeting and doing the DAILY FX POSTS.

Good Luck,

Scott