There is a lot of green on the heat map at the start of the week, suggesting that the current ‘risk-on’ mood is set to continue although this will be dependent on the ongoing optimism of the US-China trade talks.
US stocks remain underpinned following Friday’s rally, and once again, buying dips is favoured although any negative “trade-talk” headlines could see stocks reverse lower. Right now, investors do not seem to anticipate this happening.
WTI also still seems to be a “buy-on -dips” scenario, and is now well above the neckline of the Head/Shoulders that we mentioned before. The target here is at around $66.00 and the SL should be just below 54.00
The FX markets look less clear, although the US$ does look as though it is going to remain under some pressure for the next 24 hours, so selling dollar rallies is mildly preferred for now. At the same time, I still think it will make further gains against the Euro, Chf, Aud and Nzd in the medium term. The Yen and Sterling are best left alone I think.
*Trade of the day: February 18, 2019; 10:24 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 AudUsd @ 0.7160. SL @ 0.7205, TP @ 0.7060
Buy AudUsd @ 0.7080. SL @ 0.7030, TP @ 0.71500
Sell EurUsd @ 1.1350. SL @ 1.1380, TP @ 1.1215
Buy US$Chf @ 1.0000. SL @ 0.0.9985, TP @ 1.0140
Sell US$Jpy @ 111.00. SL @ 111.40, TP @ 110.00
Buy WTI @ 54.50. SL @ 53.50, TP @ 58.00