Signs of a Temporary Top in Stocks, Aussie
Today we had dojis in the EURUSD and USDJPY. In the case of the EURUSD, price is just shy of trendline resistance (line drawn off of May and July highs). I prefer to buy weakness. 14250 is support. The stop should be under 14200.
The AUDUSD has stalled ahead of 10900. As long as price is below Monday's high, respect the potential for a dip into the mid 10700s.
The USDCHF range was its largest since 5/27. Such moves can signal exhaustion of a trend.
The SPY stalled out Thursday after closing the gap left from the 7/8 open. Low volume and Friday’s candle pattern (dragonfly doji) warn of additional weakness.
UK GDP to be released at 8:30 GMT. Resistance is at 16400/20. 16215 is support. Short term structure is bullish as long as price is above 16120.
Key Daily Reversals – none
Largest Daily Range in 10 days – USDCHF, EURCHF
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