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.
Asian markets are at 3-1/2 month lows in a background of political uncertainties stemming from the US-China trade war now underway.
There really are no other fundamental factors to speak of so lets just look at where FX stands in all of this.
EURUSD is still anchored to 1.1235 dollars. And this level has held as strong mid-point magnet even among the intraday players as shown in the M5 chart.
Cable has broken thru weakening bids around 1.2990 and 1.2965, and the latter level is now a firm resistance. Spot GBPUSD is now heading to the next order cluster around 1.2930 dollars.
For the AUDUSD, 69.85 is still the target of interest for any retracement higher. We’re hearing of light sell stops below 69.35 so if the above retracement action fails, the move further south could be hard and fast.
USDJPY broke below 109.55 before hitting light profit-taking interests around 109.10 yen to take the dollar back higher.
On the intraday orderbook, the interest for the USD is actually quite bullish. The dollar reached the set target of 109.75 from 109.15 yen. If 75 clears convincingly, the next target is 109.90 and then 110.15 yen.
In other markets, gold completed its retracement back to the 1300 ceiling. Spot XAUUSD is now anchoring below that level before players decide whether to take it to the next cluster of orders around 1305.