Key Levels

Right now we're in the expected downside retracement from the 1.4860 level. We do have some more room to drop but there's downside resistance within the real time price action currently.

With more normalized market conditions, I'm going to post some key levels to watch. News or panic trading could certainly affect these numbers, but we'll see how they hold up.

Key downside levels:

1.4752
1.4727
1.4684
1.4666
1.4621

Key upside levels:

1.4838
1.4856
1.4883
1.4918
1.4944

I don't see any reason we can't make another attempt at sustaining a break of the 1.4800 level sometime before London opens. The 1.4760 level is initial key support. There should also be a battle between the 1.4680 and 1.4700 level should we drop that low.

Tomorrow's events in DC could play havoc on the markets, especially if no confidence is instilled in the markets and the panic trading continues.

A few traders have asked who I would recommend reading to get other points on the current situation facing the markets.

Here's my no-BS list:

John Mauldin

Mauldin is the only commentator/analyst I read. Where my analysis might be the art of the market, he's got the science. He's a trader too and he does his homework.

Financial Times

I prefer to stick to the news that comes over my newsfeed because it is what it is... they don't have copywriters manipulate the data or the delivery of the data.

But I like the FT when I want to see how certain events are being reported. I don't trust any newspapers, but FT stands out.