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NZD/USD BUYING ZONE

The NZD/USD is in the midst of another impulsive move to the upside, after breaking through the recent flag formation. Currently, we're looking for a pullback back to the 0.77980 area, at which point we'd be NZD buyers.

GBP/CAD PATTERN TRADE

The GBP/CAD 1H chart is in a descending triangle formation. A break of the base line is projected to send us back to the historic support level at around the 1.79600 handle.

GBP/USD LOOKING FOR SHORT

The GBP/USD is moving higher, we may be looking at a possible XABCD bearish pattern in the making. Adding to that possibility, the pair is overbought on both oscillators on the hourly chart. Additionally, if we look at the bigger picture on the daily, the pair remains in a down-trend, with an RSI reading of sub 50, and the pair trading below the cloud. All things considered, we favor shorting the pair at some point of exhaustion.

Our Weekly Discussion, this time, a great setup on the AUD:CAD. Check out, like it, discuss it, and share it!
http://www.investingacademy.co.uk/en...k-jan-4-jan-9/

USD/CAD Breakout Trade

The USD/CAD 30M chart looks to have broken the sideways corrective movement to the upside. This on the back of the 100 SMA and a bullish RSI reading. We're interested buyers, with an impulsive-corrective-impulsive sequence as our trading concept, our target area for this next bullish impulse is around the weekly R2 pivot zone. Our risk-to-reward on the position will be slightly over 2.5 to 1.

EUR/GBP SHORT OPPORTUNITY

The EUR/GBP has been having some significant volatility as of late. Currently, the 1H chart is trading at the trend resistance line. We've also got a nice confluence between candlestick action at resistance and stochastic crossing back from overbought, this at around the 50% retrace of the initial down move. All in all, the pair looks to have downside potential, and we favor a short trade, aiming to reignite the bearishness.

EUR/JPY KUMO BREAKOUT

The EUR/JPY daily chart has broken down a thick kumo support on the back of a highly impulsive bearish wave. Currently, the pair has retested the flat kumo bottom, and is trading bullish for the day. We're looking for an entry on a break of current lows, aiming to enjoy the fruits of the strong bearish bias on the pair as of late.

EUR/USD LONG-TERM DESCENDING TRIANGLE

We're looking at the EUR/USD monthly chart. We can clearly see how highly impulsive these latest few down months have been. However, the pair is currently hitting the base of the long term descending triangle. This is a key historical support area, and we are paying close attention to what will happen going forward. If we get a convincing breakout of the base, we're looking at a very likely move of the EUR/USD all the way to parity. Alternatively, we may very well get a bounce in the EUR, which will likely mean some correction in the greenback's rally.

DOLLAR INDEX LONG-TERM ANALYSIS

Not too much to say here, we're basically looking at massive momentum running into significant resistance, make sure to be well aware of this long-term collision and make sure to be positioned accordingly.

AUD/USD: Weekly Discussion for the Week of Jan.12-16th
the AUD/USD has been trading this week at a key historical level. If we take a look at the monthly chart, we can see that the 0.800 level has served several times as a key support/resistance reversal area. Currently, the pair has been down-trending all the way to that level, on the back of an impulsive rally in the dollar, coupled with other factors weighing on the Australian economy.
In terms of the technicals, the pair has just posted a nice bullish engulfing weekly candle, engulfing the last 2 bearish sessions in what appears to be a significant bullish impulse. In addition, the RSI reading and current direction imply that we may be looking at a cross-back from oversold conditions, which would be another bullish indication.
If we add to all this the fact that the Dollar Index is running into some significant resistance on the weekly and monthly chart, we may be correct in looking for some correction in the dollar pairs in general, including the AUD/USD.
So, we have a relatively reasonable trade setup in terms of the technicals. In terms of the fundamentals, the recently more dovish Fed Minutes, tends to suggest that a Dollar rate hike may not be forthcoming this year, which means if the AUD/USD price has factored in such a rate hike, an upside correction is all the more likely.
That being said, Australia still appears to be slowing fundamentally, given the slowdown of the Chinese economy, and especially its real-estate sector. Australia’s economy is very reliant on Chinese demand for its raw materials, and so these factors may still weigh on the AUD/USD to the downside, regardless of any USD weakness.
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