Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will probably 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.
US President appears to want to continue distracting from his domestic troubles by escalating his trade war on China.
He imposed further tariffs on $300 billion of China goods over the weekend, prompting China to just “allow” its currency to weaken to an 11-year low against the USD.
Then the US branded China a currency manipulator for purposefully and systematically weakening the yuan for the benefit of its exporters.
As market players attempt to re-assess the new environment coupled with interest rate and economic outlooks going forward, the following are our S/R levels which should hold for the next couple of days.