Greetings, Everyone!
We are about40 minutes off of the NYSE Close, as the Indices and most Equity Sectors work through Price Depreciation for the Session.
Crude and Gold reach significant points of Static Support, despite the solid Sell-Offs and increasing Builds in EIA Oil Inventories. The Key now is to see if we simply Accumulate into Consolidation… or continue to clip Static Support Areas and see further declines.
Concerning the Risk-Averse Dollar and Yen Strength, we see the Macro-Data Points of The Beige Book where retail sales, the labor markets, and commercial real estate remain weak and not well-bid in terms of Sentiment.
Treasury Auctions today also fall into weakness, and the IMF calls for drawing on Bi-Lateral Loan Agreements moving forward.
Translation: Central Banks will forfeit their U.S. Dollar Reserves… and/or possibly their Special Drawing Rights.
Here we have the Daily Capture of the EUR/USD, and the Hourly Capture of Gold… where we can clearly see Price Depreciation hitting Areas of Support.
The Euro Daily holds it’s Range as the 1.4000 Handle is clearly in sight as of writing-time. A Break of Static Support sees the 1.3980’s/50’s in the Immediate-Term as we head into the Asian-Pacific Sectors…where the Nikkei shouldpick up on the Equity Weakness out of the U.S.
Confluence with the Weekly 50% Fib Variant from the July 2008 Downleg provides solid Resistance, as the Bearish-Englufing Candle literallynegates the last Week of Price Appreciation.
Gold continues with it’s own inherent Risk… as Safe-Haven Outflows escape into Low-Yielding Asset Classes over the last couple Days.
The Hourly Bear Flag/Pennant is in “textbook” Formation, as Price looks to continue with Accumulation at the $927.00 Handle of “Transitive Rollover” Dynamic Support.
We will certainly monitor these and check in accordingly… once again… Dollar and Yen Strength lead the “Risk-Aversion Party”… so we will see how long the Strength can sustain Itself!
