Sterling has been the centre of interest on Tuesday, and the charts suggest that the session’s gains may well be added to in the days ahead although conditions do look set to be rather volatile, but buying dips in Sterling against most of the majors seems to be a plan. EurGbp and Gbp Aud look particularly interesting. A SL should definitely be kept in place though, as a negative Brexit headline could see a very quick/sharp reversal.
The US$ is under some downside pressure and given the negative look on the daily DXY charts it would appear that this may remain the case for the next session or two at least. Selling short term US$ strength may be an idea although we are approaching stiff resistance in AudUsd (0.7206), EurUsd (1.1400/10), NzdUsd (0.6905), while US$Jpy will find support at 110.25.
As for WTI, I suspect some choppy trade may again lie ahead but still think that looking to buy near 54.00/50 with a SL near 53.00 may be a plan.
Stocks had a rangebound session and may be gearing up for another leg higher – with direction likely to come from headlines emanating from the US/China trade talks, although we are not expecting anything today, with Trump on his way to meet N Korean Chairman, Kim.
The metals look mixed and are best left alone – or a range trade may be possible.
By February 27, 2019
*Trade of the day: February 27, 2019; 10:26 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.
Range Trade: EurUsd: 1.1335/1.1435 (SL 30 pips either side)
Range Trade: AudUsd @ 0.7220/0.7120. (SL 30 pips either side)
Sell EurGbp @ 0.8615. SL @ 0.8670, TP @ 0.8480
Sell Gold @ 1337. SL @ 1352, TP @ 1300
Buy GbpAud @ 1.8375. SL @ 1.8275, TP @ 1.8500
Buy WTI @ 54.25. SL @ 52.90, TP @ 56.00