The short term momentum indicators now suggest further dollar strength but with the dailies still looking heavy we may see further weakness down the tracks, but with much depending on tomorrow’s NFP reading. The prospect of a slightly stronger dollar in the near term seems to have put a cap on Gold/Silver for now although the dailies remain constructive, so buying dips may be a plan.
In other markets, there seems little reason to think that the stock market rally is about to turn lower, so go with the flow but with a tight stop. WTI is up against strong resistance (Monthly cloud base) but appears to have further gains ahead of it, where targets would be at 62.55 and possibly at 65.00
*Trade of the day: 1/4/2018 8.00 AM (AET)……
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Buy EurUsd @ 1.1960. SL @ 1.1895, TP @ 1.2080
Range trade@ 112.00/113.00. SL 30 points either side.
Buy GbpUsd @ 1.3475. SL @ 1.3440, TP @ 1.3600
Sell US$Chf @ 0.9790. SL @ 0.9815, TP @ 0.9685