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.
It has been a heady week.
The central banks of leading Asia Pac economies decided earlier in the week to cut rates “hard and early” to preempt the coming global recession.
New Zealand, India, and Thailand each surprised global markets with aggressive cuts on their respective benchmark interest rates. The Philippines is expected to follow suit before the weekend.
Meanwhile, Chicago Fed chief Charles Evans said he’s open to more rate cuts to buffer against risks to growth from ongoing trade tensions between th US and China.
The dollar is poised to close the week mixed across the board but noticeably lost more ground against gold as XAUUSD saw 1500 dollars for the first time since 2013.
The following are the S/R levels as we see it as the week draws to a close.
As you can see, the dollar is back to flat except that it’s up against the sterling pound and down against gold and the Japanese yen.