Hitting Turbulence

After the fast bleed up of the last few days I'm expecting to see a return to serious volatility during the next few days. I'm not sure of the direction, but looking at USD particularly I'm expecting that we may see some significant moves down, though longer term I'm still leaning firmly bullish on equities.

On the GBPUSD daily chart we can see that the top of the strong rising channel has almost been reached. I am expecting to see a return to the bottom of the channel once it is hit and I'm expecting to see a parallel move in EURUSD at the same time:

On the EURUSD daily chart we have nearly reached the next obvious resistance level, which is the last significant declining resistance trendline in the 1.315 area:

We've seen some recovery on ES overnight, but the broadening descending wedge I drew on the 60 min chart is unbroken and I am expecting it to hold for at least one more swing down. The target of the broken rising wedge is the important support level at 1084.5 ES:

 On the ES daily chart that 1084.5 target is the level of the lower trendline of a much larger rising wedge, if it is hit today. If that rising wedge should break downwards next week then I would expect it to develop, as they often do, into a rising channel and the target ,if hit at the end of next week, would be the lower trendline of that potential rising channel in the 1050 ES area, so we could see a retest of the mid-July lows:

I'm out all day today but I'm leaving some orders on. It should be an interesting day. :-)