Earlier today, the USD Index extended losses and dropped under the level of 95. How did this decline affect the euro, Canadian dollar and Swiss franc?
In our opinion the following forex trading positions are justified - summary:
- EUR/USD: none
- GBP/USD: short (a stop-loss at 1.3579; initial downside target at 1.2519)
- USD/JPY: none
- USD/CAD: short (stop-loss at 1.3274; initial downside target at 1. 2740)
- USD/CHF: short (stop-loss at 0.9895; next downside target at 0.9600)
- AUD/USD: none
Due to technical problems, today’s Forex Trading Alert doesn’t contain any charts. Nevertheless, earlier today, EUR/USD extended gains and climbed above the previously-broken medium-term brown resistance line. Although it was a positive signal, currency bulls didn’t manage to hold gained levels, which resulted in a drop under this line. Taking this fact into account, and combining them with sell signals generated by the indicators, it seems that the par will move lower once again in the coming days – especially if we see a daily closure under the above-mentioned brown line.
What happened at the same time with USD/CAD? The pair extended losses and slipped under the mid-Jul lows, which suggests further deterioration and a test of the upper border of the red medium-term support line (around 1.2800) in the coming day(s).
Having said the above, let’s focus on the USD/CHF. From today’s point of view, we can say that the pair moved significantly lower (making our short positions more profitable) and broke below the Jul and early Aug lows, which is a negative signal that suggests a test of the medium-term blue support line in the coming days.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts
