The pound is headed for its best week against the dollar since 2009 after Theresa May returned a sense of political stability to the U.K. and the Bank of England unexpectedly kept interest rates unchanged. Sterling is up 0.7% to $1.3434, having earlier touched $1.3481, the highest since June 30. The currency has gained 3.5% vs. the greenback this week.
In Asia, Japan +0.7% to 16498. Hong Kong +0.5% to 21659. China flat at 3054. India -0.4% to 27836.
In Europe, at midday, London -0.4%. Paris -1%. Frankfurt -0.7%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.6% to $45.40. Gold +0.2% to $1334.70.
Ten-year Treasury Yield flat at 1.53%
(Source: Seeking Alpha)
S&P Futures (ES) achieved the Average 3 Day Cycle Target (2166.25) in prior session capping off a powerful week of gains. Price progressively declined throughout the session to reach 2152 – 2153 anticipated support zone.
Today is Cycle Day 1 (CD1)…Bullish momentum remains intact and with Options Expiry today, any downside may be relatively shallow. Key support is now marked at 2152 handle.
Range Projections and Key Levels: Sept (U) Contract
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF 2152 handle continues to hold as support, THEN primary objective for Bulls will to to convert 2158 handle to new upper support.
Scenario 2: Violation and conversion of 2152 handle to resistance may encourage sellers to take more aggressive action to push price lower. Three-Day Central Pivot Zone is 2148.75 – 2146.75 and would be anticipated to illicit a firm buy response.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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