Stop-Adjustment AUD/USD

Stop-Adjustment AUD/USD

19 Dec 2018/1:40 p.m. ET

Given the reward potential long Aussie on some type of risk-on correction higher in markets and the expectation of volatility on the Fed news, we are widening our stop to 0.7088; 10 pips below the 78.6% retracement level as seen in the Aussie chart posted.

In fact, we are making a change in 2019 in our portfolio recommendations and will have two categories: 1) Short-term setups; and 2) Medium-term trades (daily/weekly charts assuming smaller position sizes with wider profit targets and risk levels). In addition, we are looking into pairing currency options with the longer term ideas.

Stocks are acting well in front of the Fed, and they are coming off some key levels. But, anything can happen and all of it can be reversed quickly. Interesting the emerging market currencies we track, 12 of them, are ALL higher against the dollar so far today. Hmmm…