Category Archives for Daily Forex Setups

NZDUSD: Buyers Challenge Tuesday’s Bearish Pin Bar

NZDUSD daily chart

On Tuesday, the NZDUSD carved out a bearish pin bar after testing key resistance at 0.7300. This is an area we discussed on Monday before the recent intraday spike up to 0.7343. Yesterday’s price action is an excellent example of why I favor the daily time frame. The pair’s failure to close above resistance at […]

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USDCAD Consolidation Ends, Next Leg Lower Begins

USDCAD channel

On Friday I wrote about two options to sell the USDCAD below 1.3380. The first would have been on a retest of the confluence of resistance at 1.3380/90. This area is joined by trend line resistance, a key horizontal level, and 4-hour channel resistance. The second option was to wait for a 4-hour close below channel […]

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NZDUSD Remains Capped by Trend Line Resistance

NZDUSD resistance area

Despite a third straight positive day, the NZDUSD fell short of overcoming significant resistance during yesterday’s session. The level in question extends from the April 2015 high and has capped several advances in recent weeks including the pre-FOMC spike on June 14th. To be fair buyers did take out last week’s high during yesterday’s session. However, […]

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AUDCAD Bulls Being Put to the Test in June

AUDCAD daily chart

I don’t trade the AUDCAD often due to the relatively choppy price action that can make things a bit more difficult to read. The pair has a propensity to move in tight ranges even when trending higher or lower. However, there is the occasional pattern that deserves a closer look and the wedge that has […]

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USDCAD: Two Options to Sell Below 1.3380

USDCAD 4-hour channel

As I write this, the USDCAD is rallying on the back of a weaker Canadian dollar. It seems the CPI miss this morning isn’t sitting well with market participants. Today’s bounce comes after yesterday’s 95 pip drop. But more importantly, today’s buyers face a major uphill battle given the breakdown that occurred on June 12th. […]

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USDJPY: Not So New Range in Play

USDJPY daily chart

The USDJPY is back above former channel resistance for the second time since early May. The level extends from the January 3rd high and has been influential throughout 2017 particularly in the last two months. Buyers managed a daily close above it on May 8th which triggered a move above the 113.25 handle. However, those […]

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EURJPY: Where to From Here?

EURJPY trend line

The Japanese yen has been a mixed bag since November 2016 when pairs like the EURJPY saw a gain of more than 1,100 pips. Then came the 900 pip pullback over four months which triggered yet another 1,000+ pip rally in mid-April. No wonder I’ve received an influx of emails and comments about the EURJPY. […]

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NZDUSD Bearish Combination Hints at a Move Lower

NZDUSD bearish pin bar

On Thursday of last week, we discussed the NZDUSD and how the recent rally was in jeopardy below 0.7240. And although the level didn’t hold up quite as well as we would have liked, the area between 0.7240 and 0.7270 has no doubt attracted an influx of offers. The bearish pin bar that formed yesterday […]

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GBPUSD: Bearish Engulfing Day Exposes Downside Targets

GBPUSD daily chart

Over the weekend we looked at the GBPUSD and how prices have held below the 1.2775 area on a daily closing basis since dropping below it on June 9th. But until yesterday’s session there hadn’t been a valid sell signal. Buyers kicked off the new week with a 60 pip rally but quickly lost their grip […]

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AUDUSD Uptrend Intact but Cracks Are Beginning to Emerge

AUDUSD 4-hour chart

The AUDUSD has been in rally mode since coming off the 0.7370 handle on June 2nd. The pair has rallied 260 pips and just last week took out the 0.7565 handle on the back of weaker than expected US CPI and retail sales. However, since the June 14th high the pair has struggled to make […]

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NZDUSD Rally in Jeopardy Below 0.7240

NZDUSD technical break

On Tuesday we looked at a rising wedge that had developed on the NZDUSD 4-hour chart. While there was no confirmed setup at the time, the pattern suggested that buyers were tiring. In fact, I even stated that a pullback of some sort was likely over the coming sessions. And while buyers managed to extend prices […]

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AUDJPY: Can the Safe Haven Yen Do It Again?

AUDJPY trend line

The AUDJPY was in rally mode overnight, spiking above former trend line support for the fifth straight session. This is a level I mentioned on May 26th where a breakdown seemed imminent given the “heavy” price action in the weeks prior. Although the pair is still trading above the trend line at the time of […]

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NZDUSD: Pullback Imminent as Exhaustion Pattern Emerges

NZDUSD 4-hour wedge

The New Zealand dollar has looked strong against the greenback in recent weeks. Since the May 5th low at 0.6817, the NZDUSD has gained an impressive 404 pips. However, a recent development on the 4-hour chart suggests that buyers are becoming fatigued. While it isn’t the most pronounced rising wedge (see the one that formed on […]

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AUDJPY 1-Hour Channel Offers Second Chance Opportunity

AUDJPY channel

Over the weekend we dissected the AUDJPY. We’ve done this a few times in recent weeks, always focusing on the trend line that extends from the 2016 low. The ascending level broke down on May 31st and has held as resistance on a daily closing basis ever since. As such, I’ve pointed out that selling […]

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GBPUSD: Key Levels to Watch Following the UK Election

GBPUSD daily chart

The GBPUSD tumbled 250 pips immediately following the exit poll from Thursday’s UK election. Although the extent of the drop is somewhat surprising, I can’t say I’m overly surprised given the bearish pattern that had formed following the May 26th selloff. The pair is currently off today’s low by more than 100 pips, suggesting there […]

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