The US$ is mildly firmer again on Friday although the momentum indicators are now rather mixed, requiring a fairly neutral stance. The Aud$ and the Kiwi still look heavy in the medium term, so I prefer the short side, while the charts for the Dollar Index (DXY) look firm, so buying US$ dips is preferred.
As with yesterday, I like US$Chf higher although the short term momentum indicators show some minor bearish divergence so buying dips is the plan. The Euro still looks heavy but major support is seen at 1.1325/1.1285 and then again at 1.1215.
The metals look mildly underpinned for the time being although I don’t think we should expect too much upside today, while WTI was choppy again on Thursday and is losing upside momentum, possibly turning lower, so I would leave it alone for now. The weeklies still seem headed higher though so I still prefer to buy dips but patience is required. The 200 WMA is at 52.20, so looking to buy it around there, with a SL below this level may be an idea, or alternatively, look to buy at the base of the right hand shoulder, around 49.50, with a SL at 48.50.
By February 8, 2019
*Trade of the day: February 8, 2019; 10:29 AM(AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
All trades are good till 5.00pm NY time. All “in the money trades” should have the SL raised to break-even, or managed manually. All “out of the money trades” should keep original SL in place.
Sell AudUsd @ 0.7160. SL @ 0.7205, TP @ 0.7010
Buy AudUsd @ 0.7050. SL @ 0.7020, TP @ 0.7150
Sell EurUsd @ 1.1400. SL @ 1.1445, TP @ 1.1325
Buy US$Chf @ 0.9985. SL @ 0.9945, TP @ 1.0070