A Flash Crash Last Night?
Remember flash crashes?
Well, one showed up last night with the Sterling dropping about 10% and then recouping to about a 2% drop.
Here is the question ... Was it really a flash crash or a real exodus out of the Sterling? (In other words, was it a computer trading issue or a trader issue?)
Based on the recoup level, it could be a trader issue, so be very careful.
Note ... today we posted the U.S. Dollar chart with the Dollar testing its resistance line and with the RSI closing slightly above its resistance line yesterday. That is a positive for the Dollar and it is one where a retest may be necessary.