The US$ has been unable to break through stern resistance, as seen in the dollar index (DXY) at 95.55, and once again on Friday, care of Donald Trump’s intervention, it failed to do so. The outcome now looks to be for further dollar weakness, at least in the short term, and I would be reluctant to buy it at current levels on Monday against any of the other majors. The medium-term view though is that at some stage, in line with Fed activity, 95.55 will give way and the next leg higher for the dollar should resume.
Elsewhere, the metals look set to retain their current corrective rally, while oil and stocks both look fairly neutral at the start of the week.
On the crosses, there is not much to go on although the Yen looks set to remain underpinned as a degree of safe-haven demand runs through the market. EurGbp may have seen a short-term top although the longer-term charts hit that Sterling may remain under pressure, both against the Euro and also the Aud$.
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*Trade of the day: 7/23/2018 12:30 PM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Buy EurUsd @ 1.1660. SL @ 1.610, TP @ 1.1760
Buy AudUsd @ 0.7375. SL @ 0.7305, TP @ 0.7475
Buy Gold @ 1222. SL @ 1215, TP @ 1240
