Our Ducks Are In A Row As The Currencies Are Ready For Their Next Moves

By comparison to quite a few previous sessions, yesterday’s might seem uneventful. That was not the case however. The markets never sleep – they offer plenty of insights, hinting at their next moves. Evaluating these, and the directions they point to, brings strong rewards. We’re ready for the powerful opportunities identified. Let’s go!

EUR/USD – Resting at Resistance?

While EUR/USD closed yesterday above the 61.8% Fibonacci retracement, the upper border of the rising orange trend channel has again stopped the bulls. The resulting pullback took the pair below the retracement and at the moment of writing these words, the exchange rate trades right at it (at around 1.1390).

A more sizable correction will be more likely and reliable only once we see the pair close today, or in the coming days, below the retracement. Should we see such price action, we’ll consider opening short positions.

USD/CHF – Support Reached. Now What?

Both the above daily charts differ only in their starting point. Zooming out, we see that the breakdown below the rising green support line was followed by a unsuccessful comeback above it. Then, the pair has moved sharply lower, reaching the green support zone and also testing the 50% Fibonacci retracement in the process.

Coupled with the positioning of the daily indicators, the odds of a reversal and a bigger move to the upside in the very near future have risen. Should we see more bullish factors and signs emerge, we’ll consider opening long positions.

AUD/USD – Will the Bulls Fade Again?

In the last couple of sessions, we have seen AUD/USD eventually bounce off the previously-broken lower border of the declining red trend channel. The upswing took the pair to the declining brown resistance line (that is based on previous peaks) and the 38.2% Fibonacci retracement.

Additionally, the Stochastic Oscillator has moved to its overbought area, suggesting that we could see a reversal in the near future. Should we see currency bulls failing to overcome this resistance convincingly and lastingly, we’ll consider opening short positions.

Summing up the Alert, EUR/USD and AUD/USD currently trade at around an important resistance and should we see signs of the bulls’ weakness, we’ll consider opening short positions. USD/CHF appears to have reached a support, and a reversal is in the air – should we see more signs pointing in this direction, we’ll consider opening long positions. There're no other opportunities worth acting upon in the currencies.

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Nadia Simmons

Forex & Oil Trading Strategist

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.