The US$ is lower on Monday and looks heavy, particularly against the Euro, Kiwi and Aud$, while more mixed against the Yen, Chf and Cable. It also looks very heavy against the CNH. Stocks look very positive and buying dips seems to be the plan here, while the metals saw a good rally on Friday and looks as though they may have further to run on the topside, at least in the near term. Once again, these currently look to be a buy on dips. On the crosses, EurGbp looks positive, as does EurChf, while the Yen seems set to stay under pressure in the near term.
In the longer term, I still think the Aud$ will remain under pressure as the political situation will continue to hamper risk sentiment, with the likelihood of a Labor Government in the next 9 months being highly likely.
The US$ should remain underpinned in the longer term as the Fed raises rates, widening the differential between the US and all its other counterparts.
By August 27, 2018
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*Trade of the day: August 27, 2018 7:59 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Short term
Buy EurUsd @ 1.1590. SL @ 1.1545, TP @ 1.1650
Buy AudUsd @ 0.7290. SL @ 0.7250, TP @ 0.7360
OR
Range Trade: EurUsd: 1.1580/1.1680
Range Trade: AudUsd: 0.7280/0.7380
Medium term
Sell EurUsd @ 1.1670. SL @ 1.1710, TP @ 1.1500
Sell AudUsd @ 0.7370. SL @ 0.7420, TP @ 0.7300
