The stock markets have again the centre of the action heading on Monday with an early US rally being sharply reversed and then late in the day taking out Friday’s lows and some important rising trend support and looking very heavy for the days ahead. , It will remain highly volatile but the overall theme remains one of selling rallies, with nearby downside targets in the S+P being 2575 (100 WMA ) and then 2530 (4 Feb low).
In the FX markets, conditions have been generally choppy, with the EU majors confined to a relatively tight range. The Jpy is seeing some safe-haven demand as the stock markets head lower while the Aud and the Kiwi are both trading in rather heavy fashion, but are both well above Friday’s lows. Further choppy trade near current levels looks likely today.
Elsewhere in the FX markets US$CNH is creeping slowly higher although we are very close to 7.00, which will remain a formidable barrier.
Silver took a hit on Monday (-1.5%) and looks as though it may have further to fall, which in turn may drag Gold (0.3%) along with it.
WTI is also lower (-1.57%) and is sitting on strong support above 65.70. A break of this level will see a run towards 64.40 (16 Aug low) and eventually towards 63.50.
Economic data highlights will include:
Tue: Japan Unemployment, UK Budget Report, CBI Distributive Trade Survey – Realised, Australian Building Permits, RBA Bullock Speech, German Unemployment, EU Q3 Preliminary GDP, Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate, German CPI, Case Shiller House Price Index
*Trade of the day: October 30, 2018 7:52 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Sell EurUsd @ 1.1440. SL @ 1.1480, TP @ 1.1350
Range Trade: US$Jpy: 112.00 /113.00 (SL 30 pips either side)
Range Trade: AudUsd: 0.7100/0.7015 (SL 30 pips either side)
Range Trade: EurUsd: 1.1450/1.1350 (SL 30 pips either side)
Sell AudUsd @ 0.7100. SL @ 0.71350, TP @ 0.7010
Sell WTI @ 67.25. SL @ 68.10, TP @ 64.50