From the FXWW Chatroom: 108 has been the magical bottom so far this year. Japanese retail buyers, mysterious Asian buyers. Part of the market believes this is the bottom and will bounce into FOMC and the Debt ceiling clearance. I am not the believer yet for the USD bounce, so still keeping a bearish stance. Weakness in the USD is still persistent in the market with stocks coming off and US10y testing the 2% level again. North Korean situation will not disappear unless an outright war or an assassination of KJU. But here is the dilemma, European see this Asia geopolitical risk as JPY negative thus the selling of JPY despite the risk off momentum, thus mixing up the whole movement.Being cautious at these levels, waiting for small bounces to enter back into short convictions, 108.75-109.08-109.18 are the resistance levels. 108.15-30 is the first support with 2017 low and the recent low. Again a break of 108.00 should ignite more selling.
View the latest market information in the FXWW Chatroom with a free trial.