Cable has been the main attraction on Monday following the postponement on the Brexit vote. It has headed sharply lower and it would seem that there is plenty more downside potential against both the US$ and on the crosses. I would trade from the short side, but the volatility means picking levels very carefully as a positive headline would bring about a sharp rally. Conservative traders are best to avoid trading it altogether. At this point GbpNzd looks to be the clearest trade.
Elsewhere, the US$ looks bid in the near term against the Euro, Aud$ and the Jpy. The Chf is finding some safe haven demand because of the Brexit situation and appears to be building some positive short term momentum against the Euro
Stocks remain highly volatile but I prefer to trade from the short side, in selling rallies, although picking levels is tricky. The short term charts are currently looking positive so we may see better levels today but the longer term charts remain negative.
Gold was unable to break above 1250 and is lower today, at 1243, and with the charts rolling over, selling the rally with a tight SL above 1250 may be the plan here. WTI is too choppy and headline driven so I would tend to avoid or to play a wide range above 50.00, with stop losses placed above 55.00 or below 49.25.
*Trade of the day: December 11, 2018; 7:10 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.
Range Trade: EurUsd: 1.1300/1400 (SL 30 pips either side)
Range Trade: AudUsd: 0.7165/0.7265 (SL 30 pips either side)
Range Trade: US$Jpy: 113.80 /112.80 (SL 30 pips either side)
Sell AudUsd @ 0.7215. SL @ 0.7255, TP @ 0.7115