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Category Archives for Daily Forex Setups

USDJPY: 113.25 Is the New “Line in the Sand”

USDJPY confluence of resistance

USDJPY bulls are on the move after losing 550 pips between May 11th and June 14th. In fact, buyers have struggled to do much of anything since December of last year when the pair topped out at 118.60. With Monday’s session closing above the 113.25 handle, we were watching for a subsequent close above the […]

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AUDUSD Rally in Jeopardy Below 0.7620

AUDUSD rising wedge

The AUDUSD has been all over the map so far in 2017. The good news for traders, however, is that the pair has been moving in swings of several hundred pips, providing follow through to those who time their entries right. Not only that, but the price action for the last 12 months has been […]

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NZDUSD on Thin Ice to Start the New Week

NZDUSD support area

The NZDUSD is right back to the confluence of support at 0.7290 just 14 hours into the new trading week. To be more precise, the level appears to be 0.7288 at the time of this writing. We discussed this area over the weekend as one to watch. At the moment, we are patiently waiting for a […]

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AUDUSD: Sellers Flock to Fourteen-Month Resistance

AUDUSD daily resistance

The AUDUSD just retested a level that dates back to April of last year. The trend line that extends from the 2016 high at 0.7834 capped two previous advances, not including the November 2016 selloff. The weekly chart below illustrates the significance of this trend line. This is the same level that triggered the bearish […]

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EURUSD Approaches Confluence of Resistance at 1.1450

EURUSD daily chart

In the last weekly forecast, I mentioned how I was cautiously bullish the EURUSD as long as price remained above the 1.1100 area. I also stated that a close above 1.1250/85 would expose the next key resistance level at 1.1390. But perhaps a more important observation in that commentary was the confluence of resistance near […]

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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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