Daily Price Action
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Weekly Trading Forecast: GBPAUD, AUDCHF and EURCAD

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Happy New Year! I hope your holidays were as enjoyable and relaxing as mine were. Time to get back to business and make 2015 even more profitable than 2014.

Before we get started with today’s commentary, I would like to point out that the markets are still a bit “tricky” coming off the holiday season. In other words, they haven’t settled into their normal ebb and flow that we’re used to seeing. As such, I would recommend scaling back your position sizing or reduce your trading frequency altogether for the next week or two until the markets settle.

With that out of the way, let’s get into the setups…

We’re kicking off the new year with three potential setups. The first one we’re going to look at is GBPAUD. The pair was able to form a new high just before the end of 2014. However the first day of 2015 produced a bearish outside day, indicating that a pullback to support may be in order.

From here we can watch for bullish price action on a pullback to support in the 1.8650 region. It should be noted that 1.8600 was the 2014 opening price. These areas often act as key levels going forward, so I do expect to find buyers in this area. A look above shows resistance at 1.9017 and 1.9380.

There is an opportunity to trade Friday’s bearish outside day as a short setup, however keep in mind that this would be a counter-trend trade. A pullback to the 1.90 area with bearish price action would be needed to justify a short entry. Only consider it if your trading plan allows for counter-trend trades.

Summary: Wait for a pullback to support between 1.8600 and 1.8650 and then watch for bullish price action on the daily or four hour time frame. Key resistance comes in at 1.9017 and 1.9380.

GBPAUD bearish engulfing bar on the daily time frame

AUDCHF analysis

AUDCHF daily forex chart

EURCAD analysis

EURCAD daily forex chart

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