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

EUR/USD: none (in other words, we decided to close our short positions and take profits off the table)
GBP/USD: long (a stop-loss order at 1.2802; the initial upside target at 1.3312)
USD/JPY: none
USD/CAD: none (in other words, we decided to close our long positions and take profits off the table)USD/CHF: long (a stop-loss order at 0.9662; the initial upside target at 0.9813)
AUD/USD: none

EUR/USD

After a string of recent losses, the pace of decline in the common currency has moderated. Is a cautious approach the call of the day now?

Earlier today, EUR/USD extended losses and slipped to 1.1085, almost touching our downside target. This has made our short positions even more profitable. In the following hours, the exchange rate rebounded slightly, which could translate into a bigger move to the upside in the coming week.

Therefore, so as not to compromise on cashing our open profits, we decided to close our short positions and take money off the table. Should we see more reliable signs confirming the upper hand of either the bulls or the bears, we'll consider opening new positions. Standing aside is the most reasonable course of action from the risk-reward perspective now. As always, we'll keep you informed.

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

USD/CAD

Yesterday, USD/CAD extended gains after our Alert was posted, and the pair reached our upside target. However, the bulls didn't manage to overcome the previously-broken neck line of the head and shoulders formation, which triggered a pullback.

Earlier today, the buyers showed weakness once again, which suggests that further deterioration may be just around the corner. In order to secure meaningful open profits, we decided to close our short positions and take money off the table. Should we see reliable signs pointing to either the bulls or the bears being in control of the market, we'll consider opening new positions. As always, we'll keep you informed.

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist