The US$ has run out of steam – at least for the time being – after the under-performance of the US inflation data. The momentum indicators look somewhat mixed on Friday, and in the absence of any major data today it would seem set to be a day of consolidation. Buying into US$ weakness does still seem to be the medium term plan but I would not be surprised to see further, near-term dollar weakness. Cable also looks very weak after the BOE outlook, and selling the Sterling crosses also looks to be the theme. Finally, check the charts out for EurAud, which seems to be building a topping formation.
The US stock indices have broken to the topside of the triangle resistance, mentioned previously, and would now seem capable of heading higher after the modest rise in consumer prices which eased concerns that the Fed might raise interest rates more than expected this year.
WTI still looks set to run higher and buying dips would seem to be the plan.
*Trade of the day: 5/11/2018 7:50 AM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Sell EurUsd @ 1.2000. SL @ 1.2050, TP @ 1.1850
Sell AudUsd @ 0.7580. SL @ 0.7610, TP @ 0.7450