The stock markets have once again been the centre of the action on Thursday, today bouncing strongly off their lows, and with the short term momentum indicators now looking more positive, the bounce may well continue. The medium/long term charts however still look very heavy, and further losses in the days ahead would not surprise. It is likely to remain highly volatile so extreme caution is needed, with today’s US GDP data to provide the direction.
In the FX markets, EurUsd and GbpUsd still look very heavy and selling rallies is preferred
The Aud$ and the Kiwi both look more neutral against the US$ as the chop around within their range but they actually look quite positive on the crosses and may be worth buying against either the Euro or Sterling, which both remain weak.
The commodities look set to be choppy into the weekend and are possibly best left alone today.
The main economic events will include:
Fri: Japan – Tokyo CPI, US GDP/US Personal Consumption/Expenditure, Rts/Michigan Consumer Sentiment Index, ECB Speeches – Draghi/Coeure
*Trade of the day: October 26, 2018 6:51 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 @ 1.1400. SL @ 1.1440, TP @ 1.1310
Range Trade: US$Jpy: 112.00 /113.10 (SL 30 pips either side)
Range Trade: AudUsd: 0.7110/0.7010 (SL 30 pips either side)
Sell AudUsd @ 0.7120. SL @ 0.7150, TP @ 0.7010