No what? Damned if I know…Near-term, it looks as though the 1..3920/30 area is now a firm cap amid talk of Chinese selling on strength. Three tries to overcome that area failed and we’ve not slipped back below the 1.3850 intraday support area and have retraced a bit over half of the 1.3747/1.3932 rebound. 1.3818 is the 61.8% retracement of today’s range.
Looks like equities are feeding off dollar strength and vice versa again today. Given that stocks are in danger of rolling over again, a sustained bout of dollar strength could be the result.
Keep an eye on the 908.00 area in the S&P 500. That is the 200-day moving average. A break below will unnerve some of the short-term bulls. 880 would then become the critical line in the sand.
