The US$ is firmer again today after the market decided to head into risk-off mode, and it looks as though we could be in for more of the same heading into the weekend. Stocks ended lower and with all the charts pointing to further losses ahead, trading from the short side is preferred. Following on from this, trading the Jpy from the long side would also seem prudent and looking to sell EurJpy, GbpJpy or NzdJpy may be a plan. Cable looks heavy and seems set to head back below 1.30, while EurUsd, the Aud$ and the Kiwi also still look to be a sell on rallies.
Gold looks underpinned in the medium term, but a stronger dollar would create headwinds and Silver does not appear to be following it higher. WTI once again looks heavy and headed for 67.50.
Economic Calendar today:
Fri: China Retail Sales, Q3 GDP, Industrial Production, Japan CPI, EU Current Account, US Existing Home Sales
*Trade of the day: October 19, 2018 8:46 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Range Trade: EurUsd: 1.1400/1.1500 (SL 30 pips either side)
Range Trade: US$Jpy: 111.70 /112.70 (SL 30 pips either side)
Range Trade: AudUsd: 0.7035/0.7135 (SL 30 pips either side)
Sell EurUsd @ 1.1500. SL @ 1.1550, TP @ 1.1400
Sell AudUsd @ 0.7135. SL @ 0.7170, TP @ 0.7050
Sell WTI @ 70.00. SL @ 71.00, TP @ 67.50