Just Where Should We Cash Some Profits In The Currencies?

July 9, 2019

A new day, a new opportunity to cash some nice profits. It’s hard to choose where to look first – because our situation is that favorable. Time to examine the charts, and decide where to lock in some profits, and where to let them run. Let’s dive in to the details. They are rich indeed.

EUR/USD – Important Supports Reached

EUR/USD extended losses earlier today and reached our next downside target. Coupled with the proximity to the support area created by the 76.4%, 78.6% Fibonacci retracements and the mid-June lows, taking some chips off the table is justified while adjusting the trade parameters of the remainder.

USD/JPY – Knocking at Resistance

The exchange rate extended gains and climbed to the pink resistance zone reinforced with the 38.2% Fibonacci retracement. Earlier today, the bulls have tested the retracement but gave up some of their gains, thus invalidating the earlier tiny intraday breakout.

However, the daily indicators haven’t flashed any sell signals. That means that one more attempt to move higher targeting a test of the upper border of the brown rising trend channel remains likely.

AUD/USD – The Slide Goes On

Earlier today, AUD/USD has fallen below our initial downside target, making our already profitable short position even more so. The pair has declined below both last week’s lows and the 50% Fibonacci Retracement, opening the way to even lower values.

Connecting the dots, even lower values of the exchange rate are likely still ahead of us and our profitable short position remains justified.

Summing up the Alert, the EUR/USD has reached levels where several supports are located, warranting closing a chunk of our profitable short positions while adjusting the trade parameters of the remainder. Cashing in some profits is justified from the portfolio point of view, providing better stability of returns over time. As AUD/USD keeps pushing lower, we’re giving our open profits more room to grow as our initial downside target has been reached, and both the short- and medium-term outlook favor another downswing. USD/CHF hasn’t yet brought us yet enough evidence of the bulls losing their grip – opening a short positions isn’t justified now. Apart from these, there're no other opportunities worth acting upon in the currencies.

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Nadia Simmons

Forex & Oil Trading Strategist

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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.

Nadia is a private investor and trader, dealing in currencies, commodities (mainly crude oil), and stocks. Using her background in technical analysis, she spends countless hours identifying market trends, major support and resistance zones, breakouts and failures. In her writing, she presents complex ideas with clarity that enables you to easily understand market changes, and profit on them. Nadia is the person behind Sunshine Profits' 3 premium trading services: Forex Trading Alerts, Oil Trading Alerts, and Oil Investment Updates.

Gold falls on firm dollar, China rate cut lends support