Late Risk Surge Nothing New-AUDUSD 9985 is Pivot
Markets continue to swing wildly as the month and quarter end tomorrow. If the last 3 days are any guide, then the end of day surge in risk will be sold in Asia and Europe (late day US moves have been retraced). Support overnight is 1150 and 1144 in ES, and 9740/50 in AUDUSD. Weakness overnight may be well supported as the sharp end of day advance has impulsive characteristics.
In summary, look for a partial retracement of the end of day rally in risk before the next leg higher into 9840/80 in AUDUSD and 1171/74 in ES. Those levels may produce the final highs before an early October sell off into fresh lows. Bottom line - I remain bearish below this week's highs (9985 AUDUSD and 1190 ES are the 'lines in the sand') with the understanding that risk may extend slightly higher before selling off sharply.
Jamie holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market. Send requests to receive his reports via email to email@example.com and follow hom on Twitter @JamieSaettele.
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