A cautious return of risk appetite filtered through financial markets yesterday. The risk sensitive currencies which are the AUD,CAD and GBP outperformed at the expense of the EURO and the USD. The markets were helped overnight by better than expected GDP from Australia. Today London is open again and we will have more liquidity in the markets. All eyes will be on the ECB meeting this morning with most analysts expecting no change in rates.
June S&P 500
The S&P worked perfectly yesterday as we traded down to my buy level with a low of 1267 and then rallied up to my target with a high of 1288. I am flat here as we are now trading at 1294 and we still have a gap left from Thursday’s close at 1308. Today I will sell from 1301/1306 with a 1309 stop. I will look to buy on any dip from 1280/1285 with a 1278 stop.
June Euro
After I posted yesterday the Euro traded down to 1.2420. I went long at 1.2440 and I have taken profit this morning at 1.2510. The market has good resistance from 1.2540/1.2570 If we break this level we should trade up to 1.2650/1.2700. I want to stay flat and react after the ECB announcement later. I will also look to buy on any dip back to 1.2420/1.2450 with a 1.2395 stop.
June Cable (USD/GBP)
My Cable position worked out very well and I was able to take profit overnight at 1.5440 and I am now flat. I will look to reset my long position on any dip back to 1.5390/1.5410. If Cable can trade up to the 1.5600 I will be a seller here with a 1.5630 stop.
June Gold
Gold is now trading at 1630 and I have taken profit here on my 1610 long from Friday. I will look to reset on any dip to 1610/1615 with a 1598 stop. I do not want to be short Gold.
June DAX
After I posted yesterday, the DAX traded down to 5920. I went long and I have taken profit this morning at 6030 and I am now flat. I dont want to have a position ahead of the ECB meeting and I will look to react after the policy announcement. If the DAX trades back to the 5950 area I will look to reset my long position with a 5915 stop.
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