Making Money on the Euro Bulls' Conspicuous Absence Today

After yesterdays relative indecision, currencies are on the move today. This is especially true of the euro. Does it look to you like lower values are just ahead, or can the bulls stem the decline? Its not about the euro only though weve seen pretty interesting action in the Australian dollar yesterday. The question is whether its upswing has changed the outlook, or not. Lets dive into these pressing questions and turn the resulting knowledge into something beneficial to you.

EUR/USD Rolled Over to the Downside

Earlier today, EUR/USD has moved sharply to the downside, making our short positions more profitable. It has broken below Fridays lows, opening the way further south. The daily indicators continue to support the downswing, and we may see the Stochastic Oscillator issue its sell signal as soon as todays trading is over.

USD/JPY Consolidating or Not?

Overall, the situation hasnt changed much as USD/JPY keeps trading sideways in a very narrow range around the upper border of the green support zone. Looking at the daily indicators though, we see that they are on sell signals. This means that one more downswing and a test of the lower border of the green support zone and the early-July low is probable.

AUD/USD Still Likely to Reverse Down

Yesterdays AUD/USD upswing took the market to the vicinity of our waiting order. This fact coupled with the bearish outlook described below, makes us move the stop-loss higher to preempt a possible stop-run move. While yesterdays move higher may look encouraging, it only took the pair to the resistance area created by the early-May and early-July peaks, and the pink gap.

Such a strong combination of resistances has been strong enough to stop the bulls at the beginning of this month already. It suggests that as long as the gap is open, another downward reversal from here with further declines to boot, remain very likely indeed.

Summing up the Alert, the EUR/USD rebound gave way to todays downswing, and the profitable short position is justified. AUD/USD looks unable to add to yesterdays gains, as its strong combination of nearby resistances has stopped the bulls yesterday. As the same thing happened earlier this month already, the short position remains justified. Taking into account the possibility of a stop run, were moving the stop-loss a bit higher. Apart from these, there're no other opportunities worth acting upon in the currencies. As always, we'll keep you - our subscribers - informed.

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Thank you.

Nadia Simmons
Forex & Oil Trading Strategist

Sunshine Profits - Effective Investments through Diligence and Care

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.