The US$ is showing us very little at the start of the week after having failed to continue with its breakout move of last Thursday, and the medium term charts look rather neutral, with the possible exception of US$Jpy, which still hints at a lower dollar at some stage. At the same time the short term momentum indicators for US$Jpy look mildly positive so selling into near term rallies may be the theme here.
Elsewhere, Sterling had an interesting end to the week, rallying strongly on the hope of an extension to Article 50. Ahead of the UK Parliamentary vote on Tuesday, I would tend to steer clear, but the midterm charts are looking increasingly positive.
The Aud and Kiwi both look a little toppish in the short term but, as with Sterling, the dailies for both currencies suggest the chance for further medium term gains.
The Euro looks set to remain choppy within its recent range, going nowhere fast although note that last week’s break above the 100 DMA (1.1480) was unable to be sustained into the weekend, which may bring about renewed selling pressure on Monday.
Stocks seem to have run out of steam in the short term may need to stop to take breath but the dailies still look bullish, while the weeklies may also be on the point of turning higher so buying dips seems to be the plan.
WTI was unable to close the week above the 200 WMA (52.05), suggesting some near term consolidation, but the longer term charts remain positive, with the weeklies possibly basing, so buying dips is still favoured.
After the recent move higher, Gold has so far failed to reach 1300 and appears to be turning lower. With the dailies looking toppish, selling into rallies, with a tight SL placed above 1300 may be a plan. Those who followed the plan on Friday and sold at 1294 may want to take profit at current levels and look to re-sell or otherwise, bring the SL down to break even and run the current position.
*Trade of the day: January 14, 2019; 10:45 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 EurUsd @ 1.1500. SL @ 1.1555, TP @ 1.1400
Buy EurUsd @ 1.1385. SL @ 1.1355, TP @ 1.1480
Sell US$Jpy @ 109.00. SL @ 109.35, TP @ 107.80
Buy AudUsd @ 0.7145. SL @ 0.7110, TP @ 0.7245
Sell AudUsd @ 0.7245. SL @ 0.7275, TP @ 0.7135
Buy WTI @ 50.50. SL @ 49.75, TP @ 53.00
Sell Gold @ 1297. SL @ 1304, TP @ 1275