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.
*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