The US$ looks to be pretty mixed at the start of the week, possibly signalling some interesting plays on the crosses, where the Commodity bloc currencies currently seem to be back in favour – at least for the short term. Safe haven demand appears set to produce further near term Yen and Chf strength as well, while around this the Euro looks fairly neutral. Both the Aud and Kiwi also look good for now against the US$ although the approaching FOMC Meeting may limit the upside as the yield differential gradually disappears.
On the crosses, both Sterling and the Euro appear to have completed their recent run higher against the Aud and further weakness looks likely, although further-out the longer term uptrend currently remains in place for both crosses and medium term players will look to buy dips.
Stocks look as though they are going to continue their relentless run higher although the oxygen up here is getting very thin and I am increasingly wary of a decent correction, while WTI may be building the legs for an attack on 60.00. Gold and Silver may see a mild recovery on Monday although Silver in particular is looking heavy and may be trying to tell us something about the future direction of Gold, albeit that it looks pretty flat right now.
NB. The US$ is opening on a firm note against most currencies following the passing of the tax bill, leaving a small chart gap to be filled in most pairs. The overall outlook though remains unchanged and I would expect it to remain choppy, at least until the US session..
*Trade of the day: 12/4/2017 8:33 AM (AET)……
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Sell GbpUsd @ 1.3510. SL @ 1.3560, TP @ 1.3430
Buy AudUsd @ 0.7575. SL @ 0.7545, TP @ 0.7640
Sell GbpAud @ 1.7810. SL @ 1.7910, TP @ 1.7450
EurUsd – Range trade 1.1820/1.1920
NzdUsd – Range trade 0.6830/0.6930