It has been a day of safe haven demand on Thursday, with the Yen and the Chf both in demand, against the US$ and on the crosses, and in the short term this looks set to continue, with an escalation of the trade-war rhetoric likely to see this theme continue into next week. The commodity currencies could come under further pressure for the same reason so for now, trading the Aud +Kiwi from the short side is favoured.
Stocks also look a bit heavy right now but with the long term charts still looking constructive, buying dips is preferred.
WTI did as we expected and headed to 70.50. Currently back at 70.00 another run to 70.50 seems possible, above which there is little to stop it moving on to 71.60. Buying dips is favoured, but keep stops tight as trade war headlines could see a swift turnaround if investors feel we could head towards a major economic downturn.
By August 31, 2018
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*Trade of the day: August 31, 2018 7:58 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Sell EurUsd @ 1.1710. SL @ 1.1760, TP @ 1.1630
Sell AudUsd @ 0.7300. SL @ 0.7340, TP @ 0.7215
Sell EurGbp @ 0.9000. SL @ 0.9040, TP @ 0.8900
Buy WTI @ 69.50. SL @ 68.85, TP @ 71.30
Buy UsdCnh @ 6.8350. SL @ 6.7985, TP @ 6.8900
OR
Range Trade: EurUsd: 1.1600/1.1700
Range Trade: AudUsd: 0.7215/0.7300
