I’ve gone thru the literature on Evergrande, the crisis-hit Chinese construction giant that’s now the world’s most indebted property builder, struggling to make good on its debts.
Intuitively, I don’t think it’s that big of a deal but I’ve learnt enough lessons from my experience thru the sub-prime crisis of 14 years ago not to keep this new crisis on my scopes in the meantime.
The following are H4 snapshots of the major pairs and we have a mixed bag ahead of this Wednesday’s FOMC.
The dollar is broadly higher against some majors and gold, and is mixed versus the Japanese yen.
Despite the dollar firming up against the euro at current levels around 1.1740, as long price action remains inside the box, the pivot level at 1.1810 still feels like a strong magnet.
Cable broke thru the target range in a major way for the third time (if you discount the smaller moves prior.)
But this time the support at 1.3650 held strong compared to the last two times. If the pivot at 1.3710 proves stronger in keeping the pound stable, I may have to focus on a new range between 1.3615-1.3800.
USDJPY is still ranging sideways and unlikely to move outside the blue zone after the FOMC result.
The Aussie broke thru support at 0.7325 and is now testing the bottom end of the range at 0.7235.
Gold broke thru support at 1775 dollars and is now pegged against the pivot at 1765.
All displayed chart support/resistance lines are either historical levels or actual confirmed order book levels currently being traded by major players based on available market intelligence.
Disclaimer: This content is for educational purposes only. It does not constitute trading or investment advice. Past performance does not indicate future results. Do not invest more than you can afford to lose.
