After a highly volatile session, care of Brexit and economic data misses in both the EU and the US, the end of the day has the US$ under some pressure, which looks like it could continue over the next 24 hours so buying dips seems to be the plan against most of the majors. As with yesterday, the Kiwi again looks set to outperform. Elsewhere, in the medium term the FX markets look to be adopting a more neutral stance against the dollar so a nimble stance is require over the next few days. Steer clear of Sterling which is likely to have big moves either way on zero liquidity.
Stocks have recovered from their lows today and may still squeeze higher but overall I still prefer to trade form the short side, so selling into strength remains the overall theme.
Despite today’s rally, the metals still look heavy according to the daily charts, but a concerted break of 1200 (Gold) and 14.00 (Silver) is needed to add momentum to the downside although this may be delayed if we see a softer US$ over the coming 24 hours. – Look to sell rallies.
WTI has reached strong Fibo support (61.8% of 42.03/76.87 @55.32) so I like to buy dips here, but with a tight SL placed just under the trend low of 54.73.
*Trade of the day: November 15, 2018 7:52 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: 1.1275/1.1400 (SL 30 pips either side)
Range Trade: US$Jpy: 114.00 /113.00 (SL 30 pips either side)
Range Trade: AudUsd: 0.728/0.7180 (SL 30 pips either side)
Sell AudUsd @ 0.7310. SL @ 0.7340, TP @ 0.7210
Buy WTI @ 55.25. SL @ 54.50, TP @ 58.00