Some mild US$ strength looks likely early in the week with the short term momentum indicators generally seeming to be positive although the longer term charts still suggest further strength may lie ahead. I suspect that this current trend of dollar weakness may be fairly mature now so, while looking to sell into near-term dollar strength, longer term traders may want to look at buying any dips near the current trend lows.
There seems to be no turnaround in the stock markets although they are now at overbought extremes. Don’t try and pick the top until we see further signs of a reversal. In the meantime the index funds will still need to buy it, even at these crazy levels.
The metals will trade in line with the dollar and currently look fairly neutral on the charts. WTI does seem to be in a bit of a topping formation, with the dailies looking rather heavy. At the same time the weeklies/monthlies are positive so buying dips seems to be the plan. We may need to see a return towards 60.00 while the dailies unwind a little first, so don’t be in a hurry to buy it.
The crosses look pretty choppy, with little to provide inspiration although AudNzd looks a little heavy right now.
*Trade of the day: 1/20/2018 8:51 AM (AET)……
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Buy GbpUsd @ 1.3800. SL @ 1.3760, TP @ 1.3940
Buy EurUsd @ 1.2170. SL @ 1.2280, TP @ 1.2135
Sell AudUsd @ 0.8035. SL @ 0.8065, TP @ 0.7950
US$Jpy; Range trade 110.30/111.30