All the action has really been in the stock markets today, and as we discussed yesterday, the longer term charts for the US stock markets do look increasingly heavy so further downside price action is favoured. The short term momentum indicators are now rather oversold so I would not necessarily sell the S+P or the DJI at current levels but look for any rally, perhaps towards 2830/26000 to do so. The ASX is also heading sharply lower and seems to have further losses ahead of it. 5885 and then 5780 are longer term Fibo targets. Again – Sell rallies.
In the currency space, safe-haven demand ensured that the Jpy was in focus, which is sharply higher both against the US$ and also on the crosses – and more of the same look highly likely in the session/days ahead.
The US$ looks rather mixed right now, but overall I still prefer to look for levels to buy the dollar for the medium term, with the exception of US$Jpy. The Aud and Kiwi in particularly look vulnerable, while Cable looks quite positive although that will be dependent on a positive Brexit outcome. Long StgAud?
The metals have been choppy again and are better left alone while WTI has taken another pummelling, down 3%, and looks set for a run towards 72.00. That area may be worth a buy, although sub 72.00 could see quite an acceleration to the downside, so keep the SL tight if going long.
*Trade of the day: October 11, 2018 7:05 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Range Trade: EurUsd: 1.1470/1.1570
Sell EurUsd @ 1.1575. SL @ 1.1605, TP @ 1.1475
Range Trade: AudUsd: 0.7020/0.7120
Sell AudUsd @ 0.7100. SL @ 0.7135, TP @ 0.7020
Sell US$Jpy @ 112.80. SL @ 113.30, TP @ 111.80
Sell EurGbp @ 0.8790. SL @ 0.8810, TP @ 0.8700
Sell S+P @ 2825. SL @ 2855, TP @ 2750