Today's message about the Forex Trading Alerts is going to be short as Nadia Simmons is not in the position to write the regular issue in full today. However, she is keeping an eye on market developments, and has sent in the following summary:

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

EUR/USD: none
GBP/USD: long (a stop-loss order at 1.2802; the initial upside target at 1.3312)
USD/JPY: short (a stop-loss order at 110.40; the initial downside target at 108.04)
USD/CAD: none
USD/CHF: none
AUD/USD: none

While GBP/USD has declined yesterday, and today's U.S.-Iran flare-up hasn't helped the pound, the pair is still trading within the rising green trend channel. The daily indicators are still supporting another move higher once the initial market reaction to this geopolitical event wears off. The long position therefore remains justified. USD/JPY is profiting from the tensions, having reached our initial downside target earlier today. Continuation of the move lower is supported by both the position of the daily indicators and the head-and-shoulders formation. A bearish close today would lend further strength to such a downside move. In closing, the short position remains justified from the risk-reward perspective.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist