In our opinion the following forex trading positions are justified - summary:

• EUR/USD: short (a stop-loss order at 1.0735; the initial downside target at 1.0388)
• GBP/USD: none
• USD/JPY: none, in other word, taking profits off the table is justified from the risk/reard perspective
• USD/CAD: none
• USD/CHF: long (a stop-loss order at 0.9891; the initial upside target at 1.0180)
• AUD/USD: none

Today’s alert is going to be quite short, because the overall situation in the forex market hasn’t changed much.

EUR/USD

EUR/USD extended gains earlier today, but it is still trading under the previously-broken green zone and the long-term resistance line.

GBP/USD

GBP/USD re-tested the support zone created by the 76.4% and 78.6% Fiboncci retracements and rebounded, which means that closing our short positions and taking profits off the table was a good decision.

USD/JPY

USD/JPY moved higher once again and reached the yellow resistance zone and the 61.8% Fibonaci retracement, which suggests that we may see a pullback in the coming days – esecially when we take into account the fact that the CCI and the Stochastic Oscillator climbed to their overbought areas. Taking these facts into account, we think that closing long positions (they were open when the exchange rate was trading around 113.50) and taking profits off the table is justified from the risk/reard perspective.

USD/CAD

USD/CAD moved a bit higher yesterday and reached the upper border of the blue rising trend channel, which triggered a quite sharp decline earlier today. As a result, the exchange rate dropped under the previously-broken yelow resistance zone (and both Fibonacci extensions), invalidating the earlier breakout. This means that our Wednesday’s decision to close long positions and take profits was very good. At this point, it is worth noting that all indicators generated the sell signals, which suggests further deterioration in the coming week.

USD/CHF

USD/CHF also moved lower, which suggests that we’ll see a re-test of the strength of the lower border of the blue rising trend channel in the coming day(s).

AUD/USD

AUD/USD bounced off the green support zone (as we had expected) and invalidated the earlier breakdown under the 38.2% Fibonacci retracement, which suggests further improvement and quite likely a verification of the breakdown under the lower border border of the red rising trend chnnel in the coming week.

We will provide you with a bigger update on Monday, once we get the weekly closing prices.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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