Euro Tests July Low; Australian Dollar at September Breakdown Level
The rally in the S&P and decline in the USD has been relentless since last Tuesday but this is a good place for the move to at least pause. ES (S&P December) reached its mid September highs and closed well off of the highs (high was 1216 and close was 1198.25). 1224 can't be ruled out but should be strong if reached.
The EURUSD rally is unfolding impulsively. Price has reached the July low (resistance). The strong advance into 13833 may have completed 3 waves up from the low. Expect weakness in a 4th wave with support at 13650/13700. A dip to there would present a long for a run at new highs.
So far, the largest decline since the AUDUSD bottomed was the drop from 10014 to 9865 (last night). I am treating this dip as wave b of the a-b-c rally from the low. Allowing for near term weakness below 10100, the implications are for continued strength towards 10500. Supports are 10075 and 10015.
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