Stocks retain a bid tone at the start of the week and as before, buying the dips is favoured, with the ASX in particular looking to head higher. WTI also looks positive and a run towards 55.45, Fibo resistance, seems to be on the cards. On the other hand, Gold and Silver both suddenly look rather heavy an a run back towards 1265/15.00 would not surprise.
In the FX markets, the US$ looks mildly bid against the Euro and the Jpy, while Sterling seems to be a buy on dips but is possibly best left aside due to the ongoing Brexit headlines. The Aud looks rather neutral, but closed on a weak note, and the Kiwi looks rather heavy as well, at least in the short term. The crosses are showing a mixed outlook and there are better things to trade right now I suspect although I do Like to be short of EurGbp as I suspect that in the longer term, Sterling is set to outperform.
Being a US holiday, it is likely to be a quiet session although the Chinese data could create some waves, especially in the Aud$.
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*Trade of the day: January 21, 2019; 10:30 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: 1.1300/1.1400 (SL 30 pips either side)
Range Trade: AudUsd: 0.7110/0.7210 (SL 30 pips either side)
Sell AudUsd @ 0.7200. SL @ 0.7235, TP @ 0.7125
Sell EurGbp @ 0.8900. SL @ 0.8945, TP @ 0.8800
Buy WTI @ 53.00. SL @ 51.50, TP @ 55.45
Sell Gold @ 1287. SL @ 1295, TP @ 1265
Current Positions:
Short AudUsd @ 0.7168
Short AudUsd @ 0.7167
Short AudUsd @ 0.7154
Short AudUsd @ 0.7205
