As you all know I tend to be a little early with some of my market observations / calls.
After studying these charts for as many hours / days / years as I – you start to see things a bit differently. As many of you are likely “just now” getting familiar with commonly occurring patterns and price levels, and starting to fit some larger “macro analysis” into your daily trading, I tend to see things the same things playing out – over and over again.
We’ve hit the “resistance zone” I suggested yesterday in the Nikkei, as well I see a “swing forming” around 1680 on the SP 500 futures, coupled with a tad bit of Yen strength and a continued weak USD.
Let’s throw in a generally weak AUD as well NZD ( the New Zealand Dollar) and what have we got? Just another “up/down churn day” or perhaps the start of something more?
I’d considered some time ago that any strength in AUD would be short-lived, and I now see that this could be about it – or at least a reasonable level to look for a trade.
Keep an eye on AUD through today and tomorrow for further signs of risk coming off.