Just Where Should We Cash Some Profits in the Currencies?

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Published : July 10th, 2019
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Category : Opinions and Analysis

A new day, a new opportunity to cash some nice profits. It's hard to choose where to look first - 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 falled 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.

Let's check how the bearish outlook goes with the weekly chart.

As we can see, the pair retested the previously-broken pink dashed resistance line. This is similar to what we saw in mid-April, and suggests that further deterioration is very likely. After all, that would be exactly what we have seen back in April.

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.

If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Forex Trading Alerts to also benefit from the trading action we describe. We encourage you to sign up for our daily newsletter, too - it's free and if you don't like it, you can unsubscribe with just 2 clicks. If you sign up today, you'll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care

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Przemyslaw Radomski is the founder, owner and the main editor of www.SunshineProfits.com. Being passionately curious about the market’s behavior he uses his statistical and financial background to question the common views and profit on the misconceptions. “Don’t fight the emotionality on the market – take advantage of it!” is one of his favorite mottos. His time is divided mainly to analyzing various markets with emphasis on the precious metals, managing his own portfolio, writing commentaries, essays and developing financial software. Most of the time he’s got left is spent on reading everything he can about the markets, psychology, philosophy and statistics. Mr. Radomski has started investigating the markets for his private use well before starting his professional career. He used to work as an informatics consultant, but this time-consuming profession left him little time for his true passion – the interdisciplinary market analysis. Establishing www.SunshineProfits.com gave him the opportunity to put his thoughts, ideas, and experience into form available to other investors.
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