FX Markets have mostly had another choppy session and the EU majors and the Jpy look set to remain fairly steady and directionless. On the other hand, the Aud$ and the Nzd$ both look heavy and at the start of the Asian day, trading these from the short side is preferred both against the US$ and the crosses. Note that the Aud$ did make a bearish key-reversal day on the charts which does suggest lower levels ahead.
Also making a technical reversal on the daily charts are the US stock indices, and trading the DJI and the S+P from the short side is now preferred, with a SL placed above the respective day’s high in each index.
Gold and Silver both took a hit, and in the short term at least, both look set to remain heavy – and may be turning lower in the medium term as well.
WTI is starting to look a little heavy in the short term, but still appears to be a buy on dips scenario in the medium term charts. Some caution is needed though – if the stockmarkets head lower, oil will find it hard to head higher.
*Trade of the day: February 22, 2019; 9:54 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 @ 0.7135. SL @ 0.7175, TP @ 0.7020
Range Trade: EurUsd: 1.1290/1.1390 (SL 50 pips either side)
Sell US30 @ 25850. SL @ 26150, TP @ 25000
Buy US$Chf @ 0.9970. SL @ 0.9940, TP @ 1.0100
Sell Gold @ 1335. SL @ 1352, TP @ 1300