The US$ is mildly firmer again today and the short term momentum indicators suggest that this could continue to be the case so buying dips against any of the majors seems to be the plan, with the Aud$ still looking particularly vulnerable following yesterday’s RBA inspired move. If so, expect the Kiwi to go along with it, with the charts actually looking as though there may be more mileage in being short the Kiwi than the Aud$.
In the other majors, I like US$Chf higher although the short term momentum indicators show some minor bearish divergence so buying dips it’s the plan.
With regard to the Euro, it still looks heavy but major support is seen at 1.1325/1.1285 and then again at 1.1215.
The firmer US$ has the metals looking heavy so selling rallies may now be the idea here.
WTI was choppy again on Wednesday and is losing momentum, so in the short term I would leave it alone.
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 7, 2019
*Trade of the day: February 7, 2019; 10:45 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
Buy US$Jpy @ 109.50. SL @ 109.15, TP @ 110.20
Sell EurUsd @ 1.1400. SL @ 1.1445, TP @ 1.1325
Buy US$Chf @ 0.9985. SL @ 0.9945, TP @ 1.0070