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.
The dollar’s movement have mostly been a function of Trump’s tweets and any indication that China is feeling the heat from the trade war.
Global stocks are ambling around 3-4 months lows, and now we’re hearing that Trump is putting out an order to ban Huawei equipment in the US, which is not doing trade negotiations any favors.
EURUSD Offers around 1.1235 held steady, turning disinterested bulls into bears. The euro is now treading water near the “usual suspect” pivot at 1.1200 dollars.
Intraday, we could be seeing attempts to take out sell stops around 1.1190 dollars.
Cable has cleared the weak bids around 1.2930 on the way to test 1.2900 dollars.
Aussie players started the day testing the sell stops around 69.35 we mentioned yesterday. Weak China retail sales and industrial production data managed to push AUDUSD further down.
The next target is 68.95-00 and then 68.75 cents, but do check out the M5 chart for possible intraday levels that can trip you up.
USDJPY tried to make for the 109.10 yen support but failed. The dollar is now back to the 109.55 anchor.