• EUR/USD: none
• GBP/USD: none
• USD/JPY: short (a stop-loss order at 113.67; the initial downside target at 111.84)
• USD/CAD: short (a stop-loss order at 1.3401; the initial downside target at 1.2934)
• USD/CHF: short (a stop loss order at 1.0192; the initial downside target at 0.9881)
• AUD/USD: none

EUR/USD

Although EUR/USD moved sharply lower and invalidated the earlier tiny breakout above the orange zone (marked on yesterday’s daily chart) and the previously-broken yellow support line yesterday, currency bulls triggered an upswing and the pair came back above the yellow line earlier today. If the bulls manage to hold gained levels and the pair closes today’s session above it, we’ll likely see a test of recent highs or even the pink resistance zone (seen on the daily chart in our yesterday’s alert) in the following days.

GBP/USD

Yesterday, GBP/USD pulled back and slipped under the pink declining trend channel, which suggests that we can see another downswing and a test of the medium-term blue support line based on the August and late-October lows in the coming days.

USD/JPY

Although the exchange rate rebounded after a drop to the 61.8% Fibonacci retracement yesterday, the proximity to the resistance line based on the previous highs encouraged currency bears to act earlier today. Thanks to their attack, the pair pulled back and slipped under the 38.2% Fibonacci retracement based on the entire November downward move, invalidating the earlier tiny breakout.

Such price action suggests that if the pair finishes today’s session under the above-mentioned resistances, we’ll likely see a test of yesterdays low or even a decline to the blue support line based on the August and October lows (you can see it on the daily chart in our last commentary on this currency pair) in the coming days.

USD/CAD

The pair moved sharply higher during yesterday’s session, which resulted in a climb to the 88.6% Fibonacci retracement based on the entire June – October downward move. Nevertheless, despite this bullish development the pair is still trading inside the pink rising trend channel, which in combination with the current position of the weekly indicators suggests that reversal and lower values of the exchange rate may be just around the corner.

USD/CHF

The proximity to the 38.2% Fibonacci retracement encouraged currency bulls to fight for higher values of the exchange rate during yesterday’s session. Thanks to their action USD/CHF moved a bit higher (compared to earlier declines), but it still remains well under the previously-broken lower border of the blue rising trend channel, which increases the probability that one more downswing is still ahead of us.

AUD/USD

The exchange rate declined sharply yesterday, which resulted in a breakdown under the lower border of the blue consolidation. Despite this bearish development, the buyers pushed the pair higher earlier today, which caused a comeback into the consolidation. Nevertheless, as long as there is no daily closure inside the formation today’s upswing could be nothing more than a verification of yesterday’s drop. Therefore, waiting for a confirmation/invalidation of the above is justified from the risk/reward perspective.

Thank you.

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

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