It has been another volatile session, especially for Sterling – care of Brexit deal, – and it looks as though Cable will remain in focus in coming days. Looking to trade it from the short side against both the US$ and on the crosses still seems to be the plan although standing aside altogether may also be prudent..
As with yesterday, the Kiwi again looks set to outperform, as does the Aud$ – following on from yesterday’s strong jobs data.
Elsewhere, in the medium-term, the FX markets look to be adopting a more neutral stance against the dollar so a nimble attitude is require over the next few days.
On the crosses, the general theme is one of a stronger Aud and Kiwi and a weaker Sterling. The Euro also looks OK in the short term charts against the Jpy and Aud$ and Chf.
Stocks have had a choppy session but have recovered from their lows to finish near session highs – 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 the current rally, the metals still look a little 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 is consolidating after having reached strong Fibo support (61.8% of 42.03/76.87 @55.32) The dailies are at oversold extremes, so I like to buy dips, but with a tight SL placed just under the trend low of 54.73.
*Trade of the day: November 16, 2018 7:28 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: 114.00.10 /113.00 (SL 30 pips either side)
Range Trade: AudUsd: 0.7240/0.7340 (SL 30 pips either side)
Buy AudUsd @ 0.7250. SL @ 0.7210, TP @ 0.7350
Buy NzdUsd @ 0.6785. SL @ 0.6755, TP @ 0.6850
Buy WTI @ 55.25. SL @ 54.50, TP @ 58.00