As we move through the traditionally “low Volume” month of August, we still have plenty of Intraday Volatility to work with… and even longer-term Views have validation with simply adhering to current Price Flow in the Macro-Ranges.
We have underlying support from the Equities Markets and Macro-Factors such as Retail Sales and Consumer Confidence to tell us once and for all the recent gains in Risk Appetite over the past few months may simply be a series of Bear market Rallies.
As we have discussed, the inherent Strength in the Dollar and the Yen… and Equities for that matter…is proving to be false and transparent.
Going too far too soon simply comes full circle… as reversal corrections will always ensue without any foundations to solidly lift Price.
The Fiber is a fine example this week, as we come off the Immediate-Term Highs at the 1.4450’s Resistance Area.
We hold a Daily Downtrend Channel here in which Price is anchored nicely, as we look towards the 1.4400 Handle of static Resistance.
Let’s see what the Asian -Pacific Sectors bring us…since we still have the “looming” status of the Shanghai Composite in the picture as well.