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.
The Japanese yen and gold are facing major corrections at the moment as markets take stock of the situation.
On cable, this is where we’re at:
The UK Parliament is suspended till 14 October. A new bill blocking a no-deal Brexit has just become law, which means PM Boris Johnson cannot force a now-illegal no-deal Brexit. The UK is due to leave the EU on 31 October, and PM Johnson’s government has to find a “deal” or be forced, logically, to request the EU for a further extension of the exit deadline, which PM Johnson promised he would not do.
PM Johnson will attend the European Council summit of 17-18 October, making 19 October a kind of “soft” deadline for any deal to be made with the EU. The five weeks from now will be like a violent black hole or a calm before the storm.
In the meantime, China is showing some more slack as its PPI declined on its sharpest drop in 3 years on the back of weakening domestic and global demand, forcing some China businesses to cut prices.
We’re not even sure of the status of the US-China trade talks, with US President Trump’s tweets continuing to distract markets.