Don’t be fooled by the apparent indecision in some currency pairs while we see the others moving to fresh 2019 extremes. Such an action smells of cashing profits and identifying new trading setups, which is exactly the subject of today’s Alert.
EUR/USD - Consolidating
We wrote in our yesterday’s commentary that while:
(…) the exchange rate moved below the upper border of the declining yellow trend channel, suggesting that we’ll see a test of the 38.2% Fibonacci retracement in the very near future.
Nevertheless, the buy signal generated by the Stochastic Oscillator suggests that the bulls will defend this support.
The bears didn’t have much success yesterday. The overall situation in EUR/USD hasn’t changed much as the exchange rate is still trading
sideways inside the blue consolidation.
USD/CAD – About to Roll Over?
USD/CAD extended gains in previous days, climbing not only above the orange resistance zone, but also above the 50%
Fibonacci retracement and the upper border of the green rising trend channel.
Nevertheless, the current position of the daily indicators suggests that the space for gains is limited and reversal in the very near future should not surprise us. This is especially so when we factor in that the 61.8% Fibonacci retracement and the red gap are not far from current levels and could trigger reversal in the following day(s).
AUD/USD – Making New 2019 Lows
AUD/USD extended losses, dropping below the lower border of the short-term declining grey trend channel during recent sessions. This decline extended beyond the early 2019 low.
Despite this bearish omen, the drop was only short-lived. The buyers took the pair back into the declining grey trend channel, suggesting that we’ll see a test of the previously-broken lower border of the declining red trend channel in the very near future.
This scenario is also reinforced by the current positions of the daily indicators - the Stochastic Oscillator generated a buy signal, while the CCI is very close to doing the same.
Summing up the Alert, the euro is still trading inside its recent consolidation, and no new positions are justified right now. The USD/JPY and USD/CHF commentaries are reserved for our subscribers. We’re keeping an eye on the opportunities in the making in USD/CAD and AUD/USD – for now, no action is justified. Apart from these, there're no other opportunities worth acting upon in the currencies.
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Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
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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.