It's very much risk off at the moment, however there is decent support at the 7300 level as we have climbed from there a few times. Should 7296 break though then there is likely to be further downside towards 7150. The bottom of the 10 day Raff is at 7299 for today, and we also have a fib level just above this at 7317. I am thinking that buying an initial dip is a decent plan, risky though it sounds! I am going to fade in some longs at these levels.
The 30min chart is bearish to start with and we may well see a dip down through the 10 day Bianca support at 7348 initially. There is resistance from the 25ema at 7355 and we have a red coral at 7366 also as resistance. The bulls will be keen to break the daily pivot at 7373 today - it's just a question of whether they can shake off the North Korea fears.
We also have another Hurricane (Irma) heading towards Florida this time and one of the biggest for a long time, so likely to cause significant damage when/if it hits landfall there. Off the back of Hurricane Harvey the US has many plates spinning at the moment that need to be managed. Irma has also seen orange juice and cotton prices rise.
So, fairly simple plan for today really watching if any early weakness down at 7317 and 7296 gets bought into.
