There is a lot of red on the heat map today; suggesting that risk aversion will remain the overall theme heading into the weekend, and it would appear that we are going to need a pretty good NFP reading later today to change that around. With trade tensions still the dominant theme, I prefer to trade stocks and the commodity currencies from the short side, while looking to be long of Jpy, Chf and Gold.
The EU majors are choppy but directionless, and further range trade may be the overall plan but there are probably better things to look at right now. Note that global bond yields currently look very heavy right now, and the momentum is lower so I suspect that any real directional move is unlikely ahead of the weekend, unless the NFP is very wide of the mark one way or the other, and that further choppy trade is the overall likely theme.
WTI is too choppy and headline driven so I would tend to avoid or to play a wide range above 50.00, with stop losses placed above 55.00 or below 49.25.
By December 7, 2018
*Trade of the day: December 7, 2018; 7:21 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: 1.1320/1.1420 (SL 30 pips either side)
Range Trade: AudUsd: 0.7175/0.7275 (SL 30 pips either side)
Range Trade: US$Jpy: 113.00 /112.00 (SL 30 pips either side)
Sell AudUsd @ 0.7275. SL @ 0.7305, TP @ 0.7165