One of the more interesting things to have occurred during the “hidden holiday season” has been the behaviour of the trade weighted US$, which has just completed a 23.6% fibonacci retracement of its rally from the February 2018 lows and, more importantly, has broken the long term support levels that have been in place for 18 months. The next level of support is back at the January 2019 lows.

The elections in Hong Kong at the weekend produced a huge swing to the Pro-democracy parties. All eyes therefore will now be on the Hong Kong Legislative Elections next September.

The following post is a long form read about the principles of Market Thinking as applied to currencies.