The FX markets look rather mixed on Wednesday after a very quiet session and it would seem that many traders will stand aside until the FOMC Meeting, due late in the day. In the meantime, Cable continues looks heavy in the short term due to the voting on Brexit, although the longer term charts still seem positive, so buying dips maybe a plan.
I still think that the overall outlook for the Aud$ is lower as many things seem to be conspiring against it, so I prefer to sell rallies.
Likewise, the Euro may be a sell right here but with a tight SL placed above the 100 DMA (1.1450), although this leaves little room for error, with the Euro currently trading at 1.1430. Alternatively a buy-entry stop above the 100 DMA may be a plan.
On the crosses, AudNzd seems mildly bid in the short term and we may see some volatility following the release of the Australian CPI. Elsewhere, Sterling is beginning to look heavy on the crosses and will be vulnerable to Brexit bad news. In the longer term though the charts do still look mildly positive for Sterling.
Stocks now look rather mixed and it would seem that we should expect further volatile price action although the weekly charts look positive and buying dips may still be the plan, which will work if the Fed shows a dovish bias tomorrow.
With WTI, as I said before, I would stay square for now but I am looking to buy nearer 50.00 or on a decisive break above 54.50, as we could be in the process of building a reverse Head/Shoulders formation (daily charts) with a target of somewhere around 66.00, so worth keeping an eye on. There is no hurry, and a few more weeks of 49.00/55.00 range trading may lie in store ahead of any directional move.
Gold did as we expected and headed up by another $8 and may be building the steam for another leg higher, so worth watching. The next targets are at 1317 and then 1325, above which it looks like blue sky until 1365. Place SL below 1300.
*Trade of the day: January 30, 2019; 7:33 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 AudUsd @ 0.7220. SL @ 0.7250, TP @ 0.7100
Buy GbpAud @ 1.8200. SL @ 1.8100, TP @ 1.8500
Buy WTI @ 50.00 SL @ 49.00, TP @ 54.00 or Buy WTI @ 54.50 SL entry, SL @ 53.80, TP @ 57.00
Buy Gold @ 1305. SL @ 1295, TP @ 1325