The stock markets have once again been the centre of the action on Wednesday, closing on the lows and leaving the overall theme unchanged; one of selling rallies. With both the short term momentum indicators and the medium/long term charts now all looking very heavy, further losses would appear to be in store.
If we do see stocks head lower, safe haven demand will only build and thus the Jpy, Chf and Gold all seem set to remain underpinned. In particular both EurJpy and GbpJpy both look as they have plenty of downside potential.
Elsewhere, the EurUsd and GbpUsd both look very heavy and a dovish Mario Draghi, at today’s CB Meeting, could see the slide in the Euro continue, while Brexit seems set to keep the pressure on Cable
The Aud$ and the Kiwi both look heavy on the short term charts, both suffering from the risk-off mood and could both test lower levels in the coming session.
Thur: NZ Trade Balance, German Consumer Confidence Survey, German IFO Business Climate/Expectations, ECB Interest Rate Decision, US Pending Home Sales, Durable Goods Orders, Goods Trade Balance, Kansas Fed Mfg Activity
*Trade of the day: October 25, 2018 7:32 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 @ 1.1450. SL @ 1.1500, TP @ 1.1350
Sell EurJpy @ 128.50. SL @ 129.10, TP @ 127.50
Range Trade: EurUsd: 1.1310/1.1440 (SL 30 pips either side)
Range Trade: US$Jpy: 112.50 /111.50 (SL 30 pips either side)
Range Trade: AudUsd: 0.7100/0.7000 (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