NOTE: I will be away for a short holiday. I will post my next update this Friday afternoon or on Saturday. Thanks!
Trump said he would intervene in the US case against a top Huawei executive if it would “serve national security interests or help close a trade deal” with China.
Sounds like blackmail.
And he’s still upbeat about getting a deal with China, although not the way UK PM Theresa May seems to be about getting her doomed-to-fail Brexit “deal” passed by Parliament.
GBPUSD went on to make 20-month lows after news broke that Tory MPs have enough numbers to force a confidence vote against PM May as soon as tonight.
We’re now faced with multiple uncertainties: May’s survival as PM, prospects for fresh elections and/or a new referendum, and the likelihood of a “hard” or “no deal” Brexit.
Orderbook-wise, we’re seeing price action stalling between the 1.2470-1.2510 cluster we mentioned yesterday.
Resistance is now at the cluster between 1.2620-50. If prospects continue to go south for the UK tonight, expect 1.2470 for a try at 1.2370-80 dollars.
EURUSD is testing the support we called at 1.1330. If price rebounds, orders at 1.1380 are still there. Otherwise, watch out for tries at 1.1290 dollars.
AUDUSD players are testing the cap at 72.35. There’s not much scalping that can be done here.
113.40 resistance broke for USDJPY but it’s not very convincing to us. 113.80 yen will need to break for any meaningful trend change.