21 Nov: Trend table outlook for FX, Commodities, Indices

By | November 21, 2018

Once again, the real action has been in the stockmarkets, and with all the red on the charts they appear set to test lower levels in the days ahead, so selling rallies is preferred. Note that the ASX SPI200 is sitting right on the 200 WMA (5610), a break of which could see it head sharply lower.

We got WTI very wrong yesterday and instead of being a buy on dips, the price collapsed by 7%, despite the oversold nature of the charts. Overall, I would stand aside for the time being. If stocks do continue to plummet, WTI is likely to go with it as a lower growth outlook is likely to create headwinds for the oil price.

The US$ is firmer today and the short term charts seem to suggest that there is more to come today so selling rallies is preferred. The Aud$ and Kiwi appear to be rolling over, on a more medium term basis, so these are the preferred currencies to trade today.

The metals look a little heavy in the short term and may have further downside if the US$ remains firm.

In the crosses, the Jpy looks set to outperform, so selling AudJpy or NzdJpy may be a plan.

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*Trade of the day: November 21, 2018; 7:15 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: 1.1300/1.1400 (SL 30 pips either side)

Sell: EurUsd: @ 1.1390 SL @ 1.1435, TP @ 1.1290

Range Trade: AudUsd: 0.7175/0.7275 (SL 30 pips either side)

Range Trade: US$Jpy: 113.00 /112.10 (SL 30 pips either side)

Sell AudUsd @ 0.7255. SL @ 0.7285, TP @ 0.7165

Sell NzdUsd @ 0.6820. SL @ 0.6850, TP @ 0.6720