Last Chance AUDUSD Short in Play
Coordinated intervention reversed markets this morning and equities continued to drift higher into the afternoon as September options expiration is tomorrow. If the S&P breaks above the August 31 high of 1224, then focus would shift to former support from June at 1246.50 and a measured level at 1276.25. The latter level intersects channel resistance in early October. Supports are 1195-1185-1175. Even a decline as low as 1175 wouldn’t confirm a top. In this market, 30 points is the old 10.
There is a ‘last chance’ AUDUSD short attempt at/near 10380. I use the term ‘last chance’ because failure to reverse at 10380 or close to there would suggest that a more important low is in place. One final decline would probe 10110/30.
EURUSD support is 13830 and 13785. A dip to there would offer a chance to get long against 13700 for a move into 13970-14030. This resistance level is defined by former congestion, the 200 day average, and underside of the former 2010-2011 trendline.
USDJPY breakdown scenario remains possible as the spike reversed at former resistance this morning shy of 7750. It is worth noting however that daily key reversals formed on the AUDJPY, GBPJPY, and NZDJPY.
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