GBPUSD 4H
Resistances : 1.31900, 1.32050 & 1.32300
Supports : 1.31200, 1.31000 & 1.30100
Correction unfolding into full scale one .
1.31000 is a very important Support that might decide is this going to be a few days downtrend, or even few weeks.
As long as above it, previous ( and a new one ) high is within the reach.
Below it can open a can of worms…
EurJpy received that hard sell interest overnight I was mentioning last night in early Asia that I thought we might see. Activity has reached equilibrium in my view for Yen pre-US session. Prefer the buy side on sell interest exhaustion for UsdJpy. AudUsd is running into options turbulence and so it will have a challenge to run uphill from here which one might think will aid in supporting UsdJpy although they operate differently.
A look at the day ahead in U.S. and global markets from Mike Dolan
After all that, Nvidia (NVDA.O), opens new tab beat expectations – which has become “expected” – and the stock retreated about 5%. This is still August, after all.
To be fair, the negative market reception to the artificial intelligence pacesetter’s quarterly results overnight was typical of the reaction to other ostensible “beats” in the sector in this earnings season. These stocks are expensive, have come a long way in a short space of time and the bar to impress is now sky high.
Morning Bid: Nvidia ‘beats’ as expected, but fallout limited
AUDUSD 4 HOUR CHART – STAR TODAY
New high after bounce off the .6761 double bottom.
As I have been noting a firm break of .6800 would leave a void of 100 pips to the next target (.6899).
This leaves .6800 as clearly pivotal with a bid as long as above it, stronger if above 6812.
No news other than firmer US stocks after the Nvidia dip in a risk on day so far.
EURUSD 4 HOUR CHART – Like an Amazing Trader textbook
Sometimes technicals work like a textbook and this is the case in today’s EURUSD break of 1.1098. As the chart shows, next target was 1.1071 following the 1.1098 break and that level has been tested. Below that is the key trendline.
There didn’t seem to be catalyst for EURUSD falling off a cliff today other than soft German states CPI and selling that ran stops. As I have been noting, EUR has been a weak link in the dollar sell off/
Otherwise, the break of 1.11 leaves this as the pivotal level that will set its tone,
The old trading adage that says “the reaction to news is more important than the news itself” is even more relevant in today’s market as central banks embark on a rate cutting path.
Good News vs. Bad News
Just more fun facts while we wait for Nvidia and because AI will play a dramatic role in the future of civilization.
The worlds urban population is growing by 70 million people each year, with 301 cities accounting for 50% of global GDP with the estimate at 66% by the end of 2025.
In 1900, 12 of the worlds largest cities were in the North America or Europe. By 2000 the number had fallen to 2. Most of the growth in cities in coming years is projected to be in China, India and Nigeria, and will account for 37% of the worlds population.
EurJpy and UsdJpy are polar opposites today from both a neural and to some extent a median reversion standpoint with the Eu being dominant on the risk aversion side obviously. My model likes that the latter traded above 145 earlier and I have doing nothing but staying on the long side since the Asian session. Looking forward to any post-Nvidia drops to see that mark ultimately revisited (expecting quite a jolt most likely downward initially which runs out of steam post-release).
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