Summary
Continued sell off in the Dollar and a move to safety as indicated by the decrease in the US 10Y yield as a result of further purchasing of US 10Y t-notes took place since my last post before New York open yesterday. As mentioned in my post yesterday investors are moving to safety ahead of the US election next week. The VIX is at 18.56 at the time of writing this post and Yen strength has dominated the market after a sharp fall in the Nikkei since New York open yesterday. Nikkei is trying to reverse to the upside and USDollar is currently at support – markets on both are bearish. News releases for today – besides ADP Nonfarm Employment Change (Oct) and crude oil inventories we have the FOMC rate statement later today. We could see some bullishness in Dollar and Yen weakness ahead of this meeting.

Dxy H4

Price came down to WM1 - the bear target for the week and is currently trying to find support as indicated on H1. Next level of support at WR2/ MPP

Dxy H1

21 clearly below the 55. Price is currently at DM2 with the previous low just below price. Bulls will try create a double bottom here though a higher high would need to form to confirm USD strength is returning to the market.

Nikkei H4

Price moved down off WM3 and broke through the target of WM1 and currently trying to find support at DS1 as shown in H1.

Nikkei H1

I would need confirmation of a reversal pattern before confirming the beginning of an upward move. Take note of the invert head and shoulders currently forming on the M5 chart. On H1 21 below 55 - market is bearish. Keep in mind that when the Nikkei moves down Yen gets strong.

US 10Y H4

As discussed in yesterday's pre-New York post, price has come off WM2 and is currently in the bear fib zone of the swing high 25 October and swing low 28 October.

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