Wednesday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

The E-Mini is near possible ST support this morning – great spot to dip into long positions as long as the 25-hour SMA is holding up. We did have a false breach yesterday after the open which was quickly reversed. Nevertheless I would venture into short positions if we see another failure. However right now I think the momentum continues to favor the bulls.

AUD/JPY back at its own 25-hour, which has been acting like a wall. Until I get further instructions I’ll be short here with a stop above the dropping SMA. We should get resolution quickly. And yes, long on a push higher, i.e. 93.5 in the next hour or so.

Gold was looking a bit confusing at first sight until I realized that it made complete sense. We’ve got a rising channel here with the 25-hour at its center. I would use border touches as opportunities to trade the swings. Not huge momentum going on here right now though.
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CAD/JPY – I’m thinking long here if we push above the 25-hour. Short on a reversal. The SMA is still dropping fast so we should see resolution here quickly. Always good to seek out setups that do not leave you in limbo too long.

EUR/USD – it’s been trying to push through those SMAs for days and as I’m typing this we are back above after a failure yesterday. I would wait for a retest here if you’re not yet positioned.

USD/JPY – very much like like the CAD/JPY trade – same idea.

Crude – just follow the 25-hour pipeline. There’s the 100-hour below in case we see a failure. This thing is looking pretty solid right now – the odds favor the bulls and we have still a few handles to go until we reach our P&F target near 99.

Cotton – follow support.

Copper – similar perspective as on gold – use those channel touches. But I would also be mindful of a breach as this could be some sort of ending diagonal.

Silver – simpler setup actually then gold as it seems to be observing its 25-hour rather well. Just follow support as always – if it breaches and we drop below the 100-hour then we can talk about short positions.

Cheers,