From the middle of the previous week AUD/USD remains in the consolidation under the resistance area. Will currency bulls be strong enough to break above it in the coming week?

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

• EUR/USD: short (a stop-loss order at 1.1402; the initial downside target at 1.1009)
• GBP/USD: short (a stop-loss order at 1.3232; the initial downside target at 1.2375)
• USD/JPY: long (a stop-loss order at 107.62; the initial upside target at 113.08)
• USD/CAD: long (a stop-loss order at 1.2931; the initial upside target at 1.3436)
• USD/CHF: none
• AUD/USD: none

EUR/USD

From today’s point of view, we see that the overall situation hasn’t changed much as EUR/USD remains in the blue consolidation. Nevertheless, the yellow resistance zone marked on the weekly chart continues to keep gains in check, which suggests that another downswing may be just around the corner. If this is the case and the pair extends declines from current levels, the initial downside target will be around 1.1017, where the 38.2% Fibonacci retracement and the green support zone (marked on the daily chart) are.

Very short-term outlook: bearish
Short-term outlook: mixed with bearish bias
MT outlook: mixed
LT outlook: mixed

Trading position (short-term; our opinion): Short positions with a stop-loss order at 1.1402 and the initial downside target at 1.1009) 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

Looking at the charts, we see that although USD/CAD pulled back at the end of the previous week, the lower border of the purple rising trend channel (marked on the weekly chart) stopped currency bears. Additionally, the buy signals generated by the CCI and the Stochastic Oscillator are still in play, supporting another attempt to move higher in the coming week. If this is the case, and we see an increase from current levels, the initial upside target will be around 1.3452, where the previously-broken lower border of the brown rising trend channel (seen on the daily chart) is.

Very short-term outlook: bullish
Short-term outlook: mixed with bullish bias
MT outlook: mixed
LT outlook: mixed

Trading position (short-term; our opinion): Long positions with a stop-loss order at 1.2931 and the initial upside target at 1.3436 are justified from the risk/reward perspective at the moment. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.

AUD/USD

On the daily chart, we see that AUD/USD is still consolidating slightly below the 70.7% Fibonacci retracement. Nevertheless, as long as there are no sell signals generated by the indicators, we think that one more move to the upside and a test of the yellow resistance zone (created by the 76.4% and 78.6% Fibonacci retracements) is likely.

Very short-term outlook: mixed
Short-term outlook: mixed
MT outlook: mixed
LT outlook: mixed

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.

Thank you.

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

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts