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.
So here’s where we’re at.
Trump tweets (no surprise) he’s going to delay some China tariff decisions as a goodwill gesture.
Then the ECB cut its main deposit rate by 0.1% to minus 0.5% and announced a major bond buyback programme to put a boot up the euro economy’s ass (my words).
Then a (supposedly) boring US inflation stat came out. I say “supposedly” boring because CPI rose “only” slightly leading mainstream armchair analysts to predict that the Fed will now be more encouraged to cut rates at next week’s FOMC.
And then we saw the Dow and S&P500 trading Thursday near all-time highs.
Four major developments, and spot FX is still in familiar orbits. Will FX prices break out ahead of the keenly-watched FOMC next week?
The following are a selection of charts in interesting timeframes and their S/Rs.