After some early weakness the US$ recovered sharply on Wednesday and for the time being it now looks as though we could see further near term gains against most of the counterparts, although I would leave Sterling alone. Note that EurUsd and US$Chf both made key day reversals, which may add to the theory of further US$ strength. The Aud and Kiwi in particular both look to be in trouble, and as I said yesterday, on a break of 0.7000 the Aud should now target 0.6960, a break of which could see a longer term move towards 0.6826 (Jan 2016 low). Sell rallies here.
On the crosses, further Yen strength on all fronts also appears to be likelihood. Elsewhere it just looks rather choppy and is probably best left alone.
Elsewhere, the US stock market indices still look positive over the next couple of days, although the volatility is extreme. However with the weekly charts still pointing sharply down selling into strength may be the medium term trade.
WTI is also looking positive again, and buying dips is preferred.
*Trade of the day: January 3, 2019; 7:28 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 @ 1.1390. SL @ 1.1440, TP @ 1.1270
Sell AudJpy @ 77.00. SL @ 77.50, TP @ 76.00
Sell AudUsd @ 0.7035. SL @ 0.7075, TP @ 0.6970
Buy WTI @ 45.40. SL @ 43.25, TP @ 49.00