The US$ looks set to remain in demand in the medium term against the Euro, Sterling and Kiwi although elsewhere a neutral stance seems set to remain in place. Both US$Chf and the $AudUsd are showing little interest either way although I still prefer to be long US$ against both. US$Jpy is possible best left alone and currently looks set to remain choppy, although EurJpy does look heavy.
As we said yesterday, the Aud$ does look as though it will continue its choppy trade, and with the CFTC figures showing Aud$ shorts at 3 year highs, the downside may be limited. The RBA Interest Rate Decision today may give us something more directional although with no change to policy expected, it will all be in the wording of the Statement that decides the direction. Technically, it still looks as though buying the Aud$ on the crosses, against the Kiwi, Euro and Gbp may be a plan.
Gold and Silver seem set to remain under pressure from the strong US$ and Gold, in particular, looks to be a sell-on-rally scenario looking for 1200 and eventually 1170.
Stocks look positive again and the buy the dip trade still seems to be in place for the time being. Note that the S+P is approaching its all time high (2878) and should run into solid resistance if/when we get there.
Sell EurUsd @ 1.1590. SL @ 1.16350, TP @ 1.1510
Sell AudUsd @ 0.7410. SL @ 0.7440, TP @ 0.7310
Sell EurAud @ 1.5700. SL @ 1.5750, TP @ 1.5600
Sell EurJpy @ 129.20. SL @ 129.75, TP @ 128.25
Sell Gold @ 1215. SL @ 1225, TP @ 1200
By August 7, 2018
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*Trade of the day: 8/7/2018 7:41 AM (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
