The EU majors are generally unchanged after a choppy session and as with yesterday, I suspect that ahead of today’s FOMC decision conditions are likely to remain the same, without too much directional bias, so range trading conditions may well prevail.
The real action is in the stock markets and in oil, where WTI is down by another 7.3% today and looking pretty awful. I suspect that we are now heading to 45.50 (61.8% of 26.03/76.87), a break of which would open the way to 42.03 (21.06.17 low).
Stocks don’t look much better, and the S+P seems ready to target Fibo levels at 2506 and then again at 2485. As with yesterday, selling rallies is preferred.
*Trade of the day: December 19, 2018; 8:10 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: 1.1320/1.1390(SL 20 pips either side)…square before the FOMC
Range Trade: AudUsd: 0.7200/0.7150(SL 20 pips either side)…square before the FOMC
Sell WTI @ 47.50. SL @ 48.50, TP @ 45.50
Sell S+P @ 2550. SL @ 2565, TP @ 2505