The currency markets look rather mixed at the start of the week following the mixed results seen following on from Friday’s US employment data. US$Jpy seems to be the standout and looks to be bid on both the short term momentum indicators and the daily indicators so buying dips may be a plan. The same applies to EurJpy where selling rallies could be the idea. Elsewhere the FS markets look rather muddled although EurUsd may see some mild downside pressure today, so selling rallies towards 1.1500 with a tight stop maybe worthwhile.
Stocks look positive still, so again, look to trade from the long side, hoping to buy dips. As we said on Friday though, some stiff resistance lies ahead, with the S+P 100 DMA currently sitting at 2707, and the 200 DMA at 2744. The DJI is also struggling at the convergence of the 100 DMA and the 200 DMA, both now at 24960.
WTI was choppy again on Friday but fished at session highs and I still like the upside, given the look of the Head/Shoulders that appears to be building, so buying dips is preferred. Having finished above the neckline at 54.50, SL should now be placed below this level.
Gold looks heavy in the short term but the longer term momentum indicators still point higher so buying dips towards 1300, with a SL placed below, seems to be the idea.
*Trade of the day: February 4, 2019; 10:30 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Sell AudUsd @ 0.7295. SL @ 0.7315, TP @ 0.7200
Buy AudUsd @ 0.7200. SL @ 0.7150, TP @ 0.7290
Buy US$Jpy @ 109.20. SL @ 108.90, TP @ 110.00
Buy Gold @ 1310. SL @ 1298, TP @ 1325
Buy EurUsd @ 1.1385. SL @ 1.1345, TP @ 1.1525
Sell EurUsd @ 1.1490. SL @ 1.1535, TP @ 1.1400