It has been a wild ride for Sterling again on Wednesday eventually running up around 200bp against the US$ and also very volatile on the crosses. With another Brexit vote due later today/early tomorrow, I would stay away from Cable although it currently looks positive and seems set to drag the Euro, Chf and Aud$ along with it. Further out the FX markets seem set to remain rather choppy and while I prefer to look for dips to buy the US$, now does not seem the time to do so. The DXY daily momentum indicators appear to be rolling over, and with the index now at 96.50 and seemingly set to test support at 96.00/95.80.
As we said yesterday, US$Jpy looks pretty stuck where it is, sitting close to the convergence of the 100 DMA/200 DMA (111.30) and bracketed by the 100 WMA (110.75/112.25) and may be a reasonable range trade.
In the commodity sector, Gold has broken above the Fibo resistance at 1306 (Gold) and seems set to test 1315/20, while Silver has yet to follow the lead and needs to move above its current level at 15.45 (Silver) to make further progress.
WTI has also made a move higher, breaking out of its consolidation and seems to test 60.00+. WTI is now breaking above the neckline of the reverse Head/Shoulders, at 58.30 and is breaking above the 100 WMA, which lies at the same level. If this is a S/H/S formation, the target here is at around $70.00 and a SL should be placed now at around 56.00
Stocks are mixed – stand aside.
*Trade of the day: March 14, 2019; 10:23 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Sell EurUsd @1.1380. SL @ 1.1425, TP @ 1.1280
Buy EurUsd @ 1.1275. SL @ 1.1225, TP @ 1.1350
Sell AudUsd @ 0.7115. SL @ 0.7155, TP @ 0.7055
Buy AudUsd @ 7050. SL @ 0.7015, TP @ 0.7135
Buy US$Chf @ 1.0000. SL @ 0.9970, TP @ 1.0100
Range Trade: US$Jpy: 110.75/112.25 (SL 30 pips either side)
Buy WTI @ 57.00. SL @ 55.50, TP @ 60.00