 Welcome back, folks. Dow. Dow's down at 7.42 Nasdaq's off 3.22. S&Ps are off 9.2. Let's go over to our mam. It's the Teddy Cakes. That is to do each and every Wednesday at 40 past the hour. You can reach Teddy, folks, every trading day at 4X-trading-unlocked.com. It's 4X-trading-unlocked.com. Ride them cowboy, Teddy! How are you guys doing today? We've got some really good things to talk about when it comes to the currency markets today. I like it. Let's go. Let's do it, Ted. Well, do you want to start with Asia or you want to start with Europe? Wherever you want, Ted. I'm wide open here. Okay. Well, why don't we start with the end? The end has obviously been in a bearish market with the dollar. Now, it made a lower move low today, confirming that it's still bearish. It's kind of looking like a nice little bounce. It's because of the dollar rally. I think it's getting a little bit of that this morning. But I would be careful with that unless you get a rally above the 105.05 area. I don't think you're going to get an upside breakout in any means. And even if you do, it would be a neutral, not necessarily bullish breakout. I think that if we test that 104 level again, which we're not too far away from, that you're going to see that continuation of the downtrend. And I really think that the US dollar yen trade is going to maintain a bearish posture even through the election. And that's the only currency I think that you can kind of count on right now as far as technically training and fundamentally without being so news driven. Yes. Now, in that same trading zone now, we have the Australian dollar and New Zealand dollar. Now, remember we talked about a month and a half ago how we had the initial divergence and currencies that started to have them free flowing again, where they weren't just trending one way against the dollar or with the dollar. So now we have this divergence that's kicked up the heels and whatever. We're coming into the elections. So now where the yen, I think is the stable one, the Aussie and the New Zealand dollar, two totally different things. Australian dollar, US dollar, it's a bear right now. So unless you get a rally above that 71.55 level, I don't think you're going to have even a neutral trade with that one. Because Australia is heading, they have a lot of issues with the coronavirus and then if we have shutdowns globally especially, we're going to get hit hard. And then it comes to the commodity things. Oil is now, we got Libya that went back online this week. That's another million plus barrel as a day of oil coming back into a market that they're looking for lower demand. So this doesn't bode well for the Australian dollar, US dollar. So for those traders who are leaning on the Aussie currency, no matter what cross it is, I would not look for very much strength in that currency at least for the next few weeks into the next couple of months. And especially if they take out that one is at the 70-20 level, I think you're going to see a free fall. Now New Zealand dollar, not the same case. That's been in a bullish market, at least in the intermediate and short run right now. And it's choppy and I think that's because of the election. And I think you're going to see more of the same with that. And today be careful because it made a newer move high, but it's setting up to have a bearish and golfing line sell signal as of the close today. So like if it was the close right now, the New Zealand dollar, US dollar, I wouldn't say that it's a bear, but it's probably set for a short term correction. So now let's move over towards our side of the world. We have the US dollar, Canada, which has been a bear and all of a sudden had an upside breakout today. So now we know that trending markets are either higher move highs and higher move lows for a bull or the opposite for a bear. So now we've come off a lower move low and we've made a higher move high in the Canada. I think that because of the elections and just because the current dollar strength right now, since we've had this bounce since last week, that's what you're seeing there. So I'd be very cautious trying to be a seller and jump into that. You know, before I was a sell rally guy for the US dollar, Canada, right now I'm off the table for the next couple of weeks. So there's divergence there. So I'd be very careful trying. Like I would look to buy dips right now in that. Now let's go to Europe. Europe we know is definitely falling into the coronavirus thing and as far as the shutdowns and who knows how that's going to go with the economy. We know it's kind of like deja vu from six months ago. I would think that it's probably going to be more of the same going into the holidays. I mean in Chicago as of today there's no longer any more indoor dining. I know, we're talking about that. Even in the whole county, even in the summer, we can't do it. So we're going full throttle back into lockdowns in Illinois and it's even going to be more extreme measures than before. You know, so I mean while this happens across the United States this is going to definitely impact oil, all these other things and you know where that goes. Plus the stock market, the S&Ps, they topped out on the 13th of October and they've been pricing in a Biden win. I mean you can tell by the sector rotations about what's going on now. Oil stocks were getting hit with stable oil prices before we started to get this oil panic again. All your defense stocks have been getting hammered for the past month. So I think that right now with that Biden pricing in the election now you add COVID on top of it you have flight to quality starting to happen a little bit in the dollar and it's starting to show against the European currencies especially. So you had the Euro, the US dollar or the Euro US dollar and the pound dollar that were trending higher against the dollar for the past couple months. Now we have a sell signal that occurred in the Euro US dollar last week and now we have this nice little sell off. Now the Swiss is not moving as much as those other two currencies are. But I would be very leery of trying to buy the Euro US dollar right now over going into the election. I think it's going to be very choppy. It's not necessarily that today's sell off is indicative of a turn in this currency. Because when we talk next week hopefully we'll know who the next president or if it's going to be Trump again, whatever and we don't have too much chaos. We're not even going to try and forecast that. But between now and then you have these extremes that you're coming into and I think that the volatility even though it's going to be there it's going to be very sideways and choppy. The Elgos I think are going to have a field day over the next week. Because the more the polls come in people are going to be like oh Biden's winning or they think Trump's going to win you're going to see these people they're going to start lining up their bets and I think most of it's already in there but if we have any surprises right now with the coronavirus spiking I think you're really going to push the extremes and I was in the S&P's for years you know that. I would sell that market every single day it's a natural thing for an S&P guy but right now I'm very bearish the S&P's right now at least for the next week. September low is a game man that's the low of mine. When you think about the shutdowns I was looking at the metals like gold really isn't popping yet but you look at the treasury bonds remember how we were talking about they locked at bid because there's nowhere they can go they can't break. One year, two years and Euro dollars can't go down in price when they know the Fed isn't staying locked for at least a year they just won't break. But the third year was dipping and then last Friday it set a low and they had a buy signal there it's got a piercing line by and remember I said for the past like since the summer I'm like I'm the buyer of the bonds just wait for it to break a couple handles and then get long and wait for it to snap back and then that extreme last week and then last week with that buy signal and now coming into the election the third year is ramping itself back up and remember we were talking last week how the spreads were getting so wide they were below that August low what two days? It got down to 172 something and now it's up to 174 something most of your viewers are probably not bond traders they don't realize that a $2 move in the third year that's a big move. It's a big move but that's my take on where I think things are going right now it's going to be choppy I would just be very cautious with the European currencies as far as getting overly bearish yet. And folks you can reach Teddy every trading day at forex-trading-unlocked.com it's forex-trading-unlocked.com Teddy have a great week safe week sad that you guys are locked down again bottom line I'm going to say safe though man Can't go out for dinner I'm going to get inside in the snow now Have a great one. Tommy and I come right back folks