The US$ remains largely within its predefined ranges against the EU majors and the Yen, while also looking to make further gains against the commodity currencies, which are suffering from the latest bout of risk aversion. Further choppy trade may be in store, but the Euro and the Chf do look quite bid at the start of the week and may see higher levels ahead, but note that 1.1470/80 is solid resistance for the Euro, while the US$Chf will see good bids at around 0.9825/50, if we get there.
With regards to the Aud$, a break of 0.7200 would target 0.7165 and then 0.7110 although that may be some way off, but selling rallies is preferred. The Kiwi looks more neutral, and with AudNzd still looking heavy in the medium term charts, trading the cross from the short side is preferred. Both the Aud and the Kiwi still look heavy against the Jpy and selling rallies is preferred, while EurAud remains well bid.
Also note that: The charts suggest that AudCad looks headed lower, as does UsdCny over the medium term.
Gold looks very bid, dependent on a softer US$, and a break of 1250 would hint at a run to the top of the channel, currently at 1256.
Stocks look very heavy again and in the case of the S+P and the DJI, a look at the 100 Week MA seems on the cards, (2600/23410).
WTI is too choppy and headline driven so I would tend to avoid or to play a wide range above 50.00, with stop losses placed above 55.00 or below 49.25.
By December 10, 2018
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*Trade of the day: December 10, 2018; 7:00 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Range Trade: EurUsd: 1.1380/1480 (SL 30 pips either side)
Range Trade: AudUsd: 0.7165/0.7265 (SL 30 pips either side)
Range Trade: US$Jpy: 113.00 /112.00 (SL 30 pips either side)
Sell AudUsd @ 0.7255. SL @ 0.7285, TP @ 0.7165
