The dollar is digesting its gains of the past three sessions and could backtest the midline of the potential channel at 81.55ish. Note the small scale .618 tag, clearing the way for the next interim target at 82.243 (red .786 and white .618) or 82.414 (red .886 and the purple .382.)
The USDJPY has completed the backtest of the white channel and the purple channel midline as expected and should head back down now. Next target 95.44 or 94.66 — and, soon. The last such drop — from Aug 2 — accompanied a 27-pt drop for SPX.
The eminis are trying to turn positive by the opening on very little positive news, but are running into resistance from two different channel lines. We could see a breakout, but for now the trend remains down. I’ll remain short.
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