I was trying to figure out a target for continued downside, as I am short since yesterday at 1.3927.Providing the lows of the 20th are tested and give way, then my next target is 1.3570 - which would equal the 38.2 % retrace of the recent rally north on the daily, also it is WS2, and it's the 127% extension of the the move south - points 1 to 2 on my chart. There is also a minor weekly s&r zone in that area. See red line.Why the 127% extension? Because the move south, points 1 to 2, retraced 76.4%. The 127% extension is the 100% of that move, if that makes sense?Also I note there is a possible channel forming on the daily - blue diagonal lines. 1.3570 could conincide with hitting that line quite nicely.This is all speculation based purely on technicals - It's equally possible we're not going lower at all, and these last few days have just been a correction in the daily uptrend. We shall see.
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As is often the case, there is a big difference between what the government statistics are reporting and what’s going on in the real world. According to the most recent inflation reading published by the Bureau of Labor Statistics (BLS), consumer prices grew at an annual rate of just 1.1% in August.
