It looks as though we are in a “risk-on” environment after Donald Trump secured concessions from the EU to avoid a trade war. Stocks soared by 1% after the announcement of a deal while the US$ weakened, and according to the charts it looks as though there may be more of the same ahead, at least in the short term. The metals joined in – and further gains here, on the back of any further dollar weakness, would not surprise.
Further out, it looks less certain, and a strong US Q2 GDP figure tomorrow would probably put a bid tone back under the dollar and also send the metals back down, so caution is warranted.
In the meantime the dollar looks to be a sell on rallies.
*Trade of the day: 7/26/2018 7:09 AM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Buy EurUsd @ 1.1700. SL @ 1.1660, TP @ 1.1800
Buy AudUsd @ 0.7400. SL @ 0.7360, TP @ 0.7485