The US$ looks set to remain in demand against the Euro and the Jpy early in the week, suggesting that EurJpy may be the trade of the day, so looking for levels to get short the cross may be a plan, somewhere in the 129.20/50 range, with a SL placed just above 130.00, or 129.70 for more conservative traders..
Elsewhere, the Aud$ and the NZ$ both look as though they will continue their choppy trade, and with the CFTC figures showing Aud$ shorts at 3 year highs, the downside may be limited so it looks as though buying the Aud on the crosses, against both the Euro and Gbp may be a plan. This continues our theme of Friday, when EurGbp fell by 120bp, and it seems there may be more ahead. Ditto GbpAud
The same applies to AudNzd, which we thought looked bid on Friday, and indeed it rallied by 60 points, and I suspect there may be more to come, looking for a test of strong trend resistance at 1.0995, a break of which opens 1.1100, possibly 1.1170.
Stocks look positive again and the buy the dip trade still seems to be in place for the time being.
WTI remains choppy but right now looks a little heavy, while Gold did rally off the strong support at 1205 on Friday, and may be looking to head higher, although a stronger dollar would ensure some major headwinds.
Sell EurUsd @ 1.1600. SL @ 1.1650, TP @ 1.1510
Sell EurAud @ 1.5700. SL @ 1.5750, TP @ 1.5600
Sell EurJpy @ 129.20. SL @ 129.75, TP @ 128.25
By August 6, 2018
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*Trade of the day: 8/6/2018 8:20 AM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
