MNI EXCLUSIVE: MNI Interviews ISM Services Chief

• No let up in heat with temperatures above 110F sees the California grid operator once again declare a grid emergency, raising the prospects of blackouts.
• This started last week with the emergency declaration on Aug 31 following previous calls from officials for homes and businesses to conserve energy, although blackouts were avoided at the time.
• As of this morning, about 46 million people in six states were under excessive heat warnings or advisories, expected to be extended through the end of the week with one of the West's most severe September heat waves.
• It sees California day ahead power prices soar, adding to prior price pressures from natural gas and gasoline alike.

California day-ahead power priceSource: Bloomberg

• RES 4: 1.2080 High Aug 18
• RES 3: 1.2000 50-day EMA
• RES 2: 1.1816/1901 20-day EMA / High Aug 26 and key resistance
• RES 1: 1.1624/1760 High Sep 1 / Low Jul 14 and recent breakout lvl
• PRICE: 1.1512 @ 16:05 BST Sep 5
• SUP 1: 1.1412 Low Mar 20 2020 and a major support
• SUP 2: 1.1324 1.50 proj of the Jun 16 - Jul 14 - Aug 1 price swing
• SUP 3: 1.1300 Round number support
• SUP 4: 1.1248 1.618 proj of the Jun 16 - Jul 14 - Aug 1 price swing

The current downtrend in GBPUSD remains intact and the pair is trading lower once again, as it started the week on a bearish note. The move lower maintains the current bearish sequence of lower lows and lower highs. The trend has entered oversold territory however this does not appear to be a concern for bears. The focus is on 1.1412 next, the Mar 20 2020 low and a major support. Initial firm resistance is seen at 1.1816, the 20-day EMA.

• RES 4: 1.0268 High Aug 15
• RES 3: 1.0193 High Aug 18 and Channel top from the Feb 10 high
• RES 2: 1.0090 High Aug 26 and key near-term resistance
• RES 1: 0.9951/1.0057 Intraday low / 20-day EMA
• PRICE: 0.9925 @ 16:03 BST Sep 5
• SUP 1: 0.9878/83 Low Sep 5 / 1.764 proj of Jun 9-15-27 swing
• SUP 2: 0.9800 Round number support
• SUP 3: 0.9785 2.00 projection of the Jun 9 - 15 - 27 price swing
• SUP 4: 0.9655 Channel base drawn from the Feb 10 high

EURUSD traded lower Monday and has traded through support at 0.9901, the Aug 23 low. The break lower confirms a resumption of the downtrend and sets the scene for a continuation lower inside the bear channel, drawn from the Feb 10 high. The move lower also maintains the bearish price sequence of lower lows and lower highs. This opens the 0.9800 handle next.