Risk aversion is the name of the game on Monday as trade concerns, slowing economic growth and political tensions continue to dominate the price action ahead of the all-important Fed meeting on Wednesday.
Stocks look very heavy and are still a sell on rally, while both AudJpy and NzdJpy appear to be heading lower in the medium term as the Jpy benefits from safe-haven demand. Both US$Jpy and AudUsd look heavy as well and I prefer to be short.
There is no green on the map today although I do suspect that ahead of Wednesday’s FOMC decision conditions are likely to remain generally choppy but without too much directional movement, so range trading conditions may well prevail. Developments in the US/China – one way or the other – tensions may change all that.
As before, Gold was unable to break above 1250 and with the daily charts rolling over and making a series of lower highs/lower lows in the 4 hour charts, selling the rally towards 1245, with a tight SL above 1250 may be the plan here.
WTI remains choppy and largely headline driven so I would tend to avoid or to continue to play the wide range between 50.00/54.50, with stop losses placed above 55.00 or below 49.25.
By December 17, 2018
*Trade of the day: December 17, 2018; 7:29 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Sell AudUsd @ 0.7200. SL @ 0.7250, TP @ 0.7100
Sell EurUsd @ 1.1365. SL @ 1.1410, TP @ 1.1225