Once again there is a lot happening in the markets so, in bullet points:
- The US$ remains very bid in the medium term against the Euro, Aud, Kiwi and Sterling in particular. The short term charts though do hint at better levels to get short of each of these pairs, so I would not be diving in on Tuesday to buy dollars, and a sell on rallies today in EurUsd/AudUsd etc would again seem to be the plan
- US$Chf and US$Jpy remain stuck in the mud against the US$ but remain firm in the medium term on the crosses. Having said that, EurJpy and NzdJpy in particular do look as though we could see a bit of a short squeeze to slightly higher levels. Further out, renewed Jpy and Chf strength seem to lie in store, so again, buy these currencies on rallies in EurJpy, NzdJpy and EurChf etc. (i.e. sell the crosses into near term strength)
- Gold and silver both did as we hoped yesterday and headed lower. While I think this is the start of a bigger move south for both, we may now see a short term squeeze higher on profit taking/soft US$ but any strength should be seen as a sell opportunity.
- The PBOC will continue to devalue the Yuan. Buy the dollar on dips although do note that we may be looking at a short term double top at 6.9100 and I suspect we could see a dip towards 6.800, which if seen is a decent buying level.
- Elsewhere: AudCad looks heavy, possible sell on rallies.
- WTI looks ok in the short term but I suspect that is a sell into strength. There are easier things to trade right now.
- Stocks – leave alone – possible sell? Too much action elsewhere.
By August 14, 2018
*Trade of the day: August 14, 2018 (AET)
*This is a personal opinion only, based on the look of the table below, and carries no guarantee of success.
Sell EurUsd @ 1.1450. SL @ 1.1555, TP @ 1.1350
Sell AudUsd @ 0.7320. SL @ 0.7380, TP @ 0.7240
Sell NzdJpy @ 73.50. SL @ 73.80, TP @ 1.72.50
Sell Gold @ 1202. SL @ 1220, TP @ 1180
Sell Silver @ 15.10. SL @ 15.55, TP @ 14.50