Note: The S/R levels (AKA likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will likely NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.
Global stocks continue to tumble along with the Chinese Yuan against the dollar, while G7 FX pairs still tread familiar ranges.
The US accused China of going back on earlier pledges to make certain law changes while China is doubling down on refusing to be forced to “swallow bitter fruit” at the expense of its national interests.
Meanwhile, there is little to no movement on talks between the UK government and the opposition Labour Party to come up with compromises that can push through a Brexit “deal” everyone can sign off on.
EURUSD is ranging around the ceiling at 1.1235 dollars. We have no bias to suggest but our S/R lines on the M5 chart should provide ample guidance on intraday interests from bank traders.
Coincidentally, 1.1235 is also mid-point of a set on the M5 chart between 1.1205 – 1.1265 dollars.
Cable is still well-supported above 1.2990 dollars. The band gets narrower as the pound is stuck ranging around 1.3010.
After failing to break the ceiling of limit sell orders around 70.20 cents, the Aussie took out sell stops around 69.85 cents instead.
This 85 level is the mid-point between the M5 set between 69.60-70.10 cents and will likely be the pivot for the next 24 hours.
USDJPY is still supported around 109.55 yen. Intraday, there seems to be pivot range of 109.70-75, which may or may not be enough for scalpers.