The increased prospects of a trade war are the cause of all the red on the heat map today, with the stock-markets seemingly leading the way, where the charts suggest that we will have further downside momentum in the days, weeks ahead. (Note that the 4 hour charts are showing a degree of bullish divergence – hinting at a possible bounce, although, if seen, this would only provide an improved sell opportunity I suspect). If we do see stocks continue to decline, look for further upside in Gold and the Jpy, both against the US$ and also on the crosses. On the other side of the coin, the commodity bloc currencies will remain heavily under pressure, while WTI will possibly also fall as trade worries dominate traders thoughts. The US$ against the majors looks set to remain choppy and some range trade may be the outcome over coming days, at least ahead of Friday’s NFP release.
Sell AudUsd @ 0.7690 SL @ 0.7730, TP @ 0.7590
Sell US$Jpy @ 106.20. SL @ 106.85, TP @ 104.80
Sell EurUsd @ 1.2325. SL @ 1.2375, TP @ 1.2220
*Trade of the day: 4/3/2018 8:33 AM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.