The US$ is very slightly softer today although movements have mostly been small and it looks like being a fairly steady session ahead, at least until the release of the US housing data, which will be important. If the data is weak, then a further dovish turn is likely to see the dollar come under increasing pressure while the stock markets will most likely increase their downside momentum. The S+P does look heavy to me, so as with yesterday I prefer to sell rallies.
In the meantime, the FX markets seem likely to trade in a range although the German Consumer Confidence is due today and the market may knock the Euro back down if it follows the recent trend of weak German data.
In other currencies, things look rather neutral although the NZD looks mildly better bid but we have the RBNZ Meeting tomorrow so I think traders a likely to be fairly cautious today.
Gold is building up some positive momentum but further gains are likely to be on the back of the direction of the US$. As before, keep an eye on Silver as the daily charts hint that a possible head/shoulder formation is forming. The neckline is not seen until 14.90, but if it breaks, the target is at around the November low at 13.90.
By March 26, 2019
*Trade of the day: March 26, 2019; 9:40 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 EurUsd @1.1360. SL @ 1.1405, TP @ 1.1235
Buy EurUsd @ 1.1260. SL @ 1.1205, TP @ 1.1360
Sell AudUsd @ 0.7135. SL @ 0.7160, TP @ 0.7150
Sell Silver @ 15.75. SL @ 16.05, TP @ 14.75
Sell S+P @ 2825. SL @ 2855, TP @ 2725