Daily Price Action
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Weekly Forex Forecast (April 6 – 10, 2015)

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Making money in the Forex market is all about finding strength imbalances between currencies. In other words, pitting a stronger currency against a weaker one.

We do this using a combination of simple price action strategies, trend analysis and key levels. Such an imbalance can be seen recently between the Euro and the Australian dollar. The Euro seems determined to rally higher, even if it is just a relief rally in the midst of a larger downtrend.

The Australian dollar on the other hand can’t seem to catch a break. The pair looks determined to break six-year lows at .7570 after failing to maintain its Friday highs on the back of Thursday’s bullish pin bar.

So while the Euro may still be considered a “weaker” currency, it looks quite strong at the moment relative to the Australian dollar.

All of this of course brings us to EURAUD. As you may well know, I like to get a feel for the context of any setup before diving into the details.

For that we turn to the daily time frame.

EURAUD breakout on the daily time frameNotice in the chart above, the pair was able to break and hold above former trend line resistance last week. This level should now act as support if the pair moves lower over the next few sessions.

Not only that, the pair was able to break free from an ascending channel that is best seen on the 4 hour chart below.

The market looks a bit overextended after last week’s late push into the close. This overextension has us waiting for a pullback to new support before considering a buying opportunity.

Summary: Wait for a pullback into the 1.4300 region and then watch for a buying opportunity. Those looking for a more conservative entry can wait for bullish price action during the retest. Key resistance comes in at 1.4530 and 1.4700.

EURAUD 4 hour chart showing bullish pin bar

 AUDJPY analysis

AUDJPY daily forex chart showing a key support level

NZDUSD analysis

NZDUSD key levels to watch during the week ahead

NZDCAD analysis

NZDCAD daily forex chart with key levels

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