Tuesday has given us few new hints, although the EM sector remains under pressure (today it was the ZAR which was under pressure), and this is weighing on the Aud$ and the Kiwi, so I prefer to trade both from the short side against the US$ and also for now against the Yen. The trade war effect is keeping traders nervous but the strong US data is again underpinning the dollar so I still like it higher and today it is interesting to note that for the first time in a while US$Chf seems to have a slightly bid tone.
WTI made it to 71.40 before reversing sharply and it now looks as though we may be in for a test of 69.00/68.50 although down there may be a decent buy on dips, with a SL placed below 68.00.
Stocks are looking a bit toppish, so selling the S+P at market (2900), with a SL above the all-time high (2920) may be a plan today although approaching the US mid-term elections in November, it would not surprise to see Trump keeping up the bullish economic rhetoric, trying to get the S+P to the 3,000 level, which would be a big feather in his cap that he could wave around during the electioneering process.
The metals look heavy – especially silver, but also gold. Both are a sell on rallies.
By September 5, 2018
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*Trade of the day: September 5, 2018 7:48 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Sell EurUsd @ 1.1610. SL @ 1.1660, TP @ 1.1500
Sell AudUsd @ 0.7200. SL @ 0.7240, TP @ 0.7100
Sell NzdUsd @ 0.6580. SL @ 0.6610, TP @ 0.6500
Buy US$Chf @ 0.9700. SL @ 0.9640, TP @ 0.9800
OR
Range Trade: EurUsd: 1.1530/1.1630 (SL 30 points either side)
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