The markets are generally very choppy right now with plenty of volatility but not a whole lot of directional bias although in the FX markets both the Aud and the Kiwi have seen a strong rally over the last week or so and both seem relatively underpinned in the medium term against the US$. Note though that AudUsd has seen a bearish outside day, as has NzdJpy, which may curb enthusiasm to buy either currency. I find it hard to become bullish either the Aud or the Kiwi as we approach 0.7500/0.7000 respectively, and still prefer to sell rallies. If the US/China trade truce does roll over, both currencies will fall sharply. The Australian Q3 GDP is due today.
Otherwise the action seems to be in the Jpy, where safe haven demand is seen against both the dollar and in the crosses. Selling Kiwi Jpy into strength is now favoured with a SL above the trend high.
Stocks are highly volatile and probably best left alone although I prefer to trade from the short side.
By December 5, 2018
*Trade of the day: December 5, 2018; 7:33 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Range Trade: EurUsd: 1.1280/1.1380 (SL 30 pips either side)
Range Trade: AudUsd: 0.7365/0.7265 (SL 30 pips either side)
Range Trade: US$Jpy: 113.00 /112.00 (SL 30 pips either side)
Range Trade: NzdUsd: 0.6870 /0.6950 (SL 30 pips either side)
Sell NzdJpy @ 78.65. SL @ 79.10, TP @ 77.65