24 Oct: Trend table outlook for FX, Commodities, Indices

By | October 24, 2018

The stock markets have been the centre of the action today, recovering from steep falls to finish slightly lower on the session, but the overall theme remains unchanged; one of selling rallies. While the short term momentum indicators are pointing higher, the medium/long term charts still look very heavy and I don’t think the downside is done with yet.

Elsewhere, the currencies are in neutral, choppy but sideways, waiting on tomorrow’s ECB Meeting and Friday’s US GDP reading, so I would not be overly involved but would continue to look to range trade.

WTI looks awful, and a daily close below 65.70 – not so far away now – would break the 16 month uptrend from June 2017. Below there, the next Fibo target would be at 63.50.

Gold is bid today although I am a bit dubious about further upside potential and we are coming up against strong resistance. Overall though, it seems to be a theme of buying dips, but with a tight SL placed back below 1220. Some consolidation would not surprise ahead of the GDP figure, Friday

Wed: Japan/EU/US Preliminary PMIs.

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*Trade of the day: October 24, 2018 6:23 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: 1.1420/1.1520 (SL 30 pips either side)

Range Trade: US$Jpy: 112.80 /111.80 (SL 30 pips either side)

Range Trade: AudUsd: 0.7040/0.7125 (SL 30 pips either side)

Sell EurUsd @ 1.1510. SL @ 1.1555, TP @ 1.1400

Sell AudUsd @ 0.7115. SL @ 0.7140, TP @ 0.7010