The euro just keeps going down and we're happily taking advantage of some pretty decent currency moves elsewhere, too. Keeping our guard up, we're bringing you another analytical results. Just where do you see new opportunities, you wonder, right?

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

• EUR/USD: short (a stop-loss order at 1.1362; the initial downside target at 1.1215)
• GBP/USD: none
• USD/JPY: none
• USD/CAD: none
• USD/CHF: none
• AUD/USD: short (a stop-loss order at 0.7272; the initial downside target at 0.7065)

EUR/USD

After Thursday's downswing, the bulls have managed to push EUR/USD a bit higher. Underscoring their weakness, they haven't made it even to the previously-broken lower border of the very short-term green rising trend channel.

This made the bears act and we're seeing another downswing in today's trading. The pair broke below the last week's lows. It means that we'll see a realization of the bearish scenario mentioned on Friday:

(...) If this is the case, a test of the red support line (the lower border of the long-term red declining trend channel) would follow.

Trading position (short-term; our opinion): Profitable short positions with a stop-loss order at 1.1362 and the initial downside target at 1.1215 are justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.

USD/JPY

Although USD/JPY moved lower earlier today, the previously-broken orange zone stopped the sellers. Simply put, a resistance-turned-support that has earlier today triggered a move to the upside.

Accounting for this upswing, the exchange rate came back to around yesterday's highs. Combined with the buy signal generated by the Stochastic Oscillator, it suggests a likely test of the recent peaks or even the yellow resistance zone in the following days.

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.

USD/CAD

After some back-and-forth trading, the blue support zone withstood the following selling pressure. That was the previous week, and a rebound followed. The pair climbed to the early-April highs and broke slightly above them earlier today,

This is a positive event for the bulls. It suggests that we'll likely see a test of the yellow resistance zone in the coming week. That is especially the case when we take into account the lack of sell signals by the daily indicators.

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.

Summing up the Alert, the euro bulls' weakness remains on full display and the profitable short position continues to be justified. The short position in AUD/USD is also developing in line with expectations. Apart from these, there're no other opportunities worth acting upon in the currencies right now. As always, we'll keep you - our subscribers - informed.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist