Macro Morning

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By Chris Becker 

Overnight risk markets are in retracement mode as the USD also falls against all the majors except the commodity proxies as Aussie, Kiwi and Loonie remain subdued. European stocks fell as bond yields dropped everywhere except in Italy, while oil prices are not moving as the latest inventory report surprises with a build.

Looking at the action on Asian markets yesterday where fortunes diverged for Chinese stocks as the Shanghai Composite bounced back above 2900 points but only just, retracing slightly at the close to only be up 0.2% to 2907 points. The continued chaos in Hong Kong kept things nervous on the Hang Seng Index which fell nearly 1% to 26323 points. With price now well below trailing ATR support and the previous support/resistance zone a full retracement down to 25000 points at the intersection of the lower trendline is likely:

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