Markets so far are responding well to the verbal intervention on Friday from Fed Chairman Powell and the Bank of Japan and UK today.
Verbal intervention is simply the assurance that the Central Banks will be there to ease and intervene if needed.
Tomorrow the G7 is meeting by phone to address the situation.
The markets are jumpy right now, erratic. Best to stay on the sides and wait for something more obvious to develop.
Keep it simple. Sell off of resistance in down trends and buy off of support in up trends.
Which means right now we must wait for pullbacks.
I expect whatever the Central Banks throw at the market will be retraced.
It is a fluid situation and we need to monitor it daily.
I am watching the EURUSD.
She is coming up into resistance but be aware there is a lot of momentum behind the move.
I am also watching AUD pairs specifically the AUDJPY.
Australian Central Bank is expected to cut rates tonight. This may cause a spike in AUD depreciation. With the G7 meetings tomorrow and markets trying to hold ground it might be a good move to fade.
I think better to watch it than trade it.
Right now, back to basics. Look for your go to setups. Send me screenshots to review.