News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • U.S. State Department lowers U.K. travel advisory to level 3 - BBG $GBPUSD
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • So, is Ethereum considered a 'value' market to new Dogecoin traders?
  • ...but before you write off H&S patterns because more have fallen apart rather than catalyzed lately, consider the monthly chart of $AUDUSD as well. That 0.8000-0.7925 zone is no joke as its historical midpoint, trendine and other technical points confluence
  • While there are other Dollar pairs getting more attention lately, I think $AUDUSD deserve a spot in the rotation. It's currently working out whether it is going to abide 2021's range as a consolidation reversal risk (H&S pattern)...
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.31% Oil - US Crude: -0.18% Silver: -0.50% View the performance of all markets via
  • Fed's Evans: - Tepid April jobs report was a 'head scratcher' - Welcomes wage growth as sign of a healthy jobs market - Fed has room to overshoot inflation target - 'It will be a while' before US has made enough progress to talk about tapering
  • US 10-Year Treasury yield extending to session highs and steering the Nasdaq to new lows of the day $NDX $QQQ $NQ_F
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.77%, while traders in Wall Street are at opposite extremes with 78.12%. See the summary chart below and full details and charts on DailyFX:
  • The price of gold extends the series of higher highs and lows from the previous week even though the 10-Year US Treasury yield retraces the decline following the US Non-Farm Payrolls (NFP) report. Get your $XAUUSD market update from @DavidJSong here:
A "Bread-and-Butter" Trade in AUD/NZD

A "Bread-and-Butter" Trade in AUD/NZD

Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • A Near-Classic Case of Selling the Downtrend
  • "Hidden" Resistance Zone in AUD/NZD
  • The Ideal Time Frame for Taking This Trade

The markets have been relatively benign of late, and our recent trades have produced rather consistent profits. (View complete trade results on Usually, overly positive or negative periods are signs of an upcoming shift in the market environment, and although this recent run has been mostly positive with only the occasional glitch, it shows a market behaving in a sustainable manner. As always, however, things can turn on a dime, but the prevailing outlook at this time is generally optimistic.

Today, AUDNZD provides a “bread-and-butter” type of trade with just a slight twist that must be accounted for.

The daily chart below is beginning an upward pullback, which is a good place to enter the strong downtrend. However, the key risk factor is that support, as represented by the bottom of the channel, has just been tested. This could potentially create a bounce that lasts longer than a day or two.

Guest Commentary: Strong Daily Downtrend in AUD/NZD

Nonetheless, it is still wiser to side with the shorts instead of the longs in this case, and as a result, a lower-time-frame entry would be needed to give greater precision and the ability to manage risk more efficiently.

The challenge with this particular trade would be in noting the special candlestick formation on the four-hour chart (see below) that is to be used as a resistance level.

Guest Commentary: “Hidden” Resistance Level for AUD/NZD

Many traders may not even notice the bullish belt hold candlestick pattern present in the previous congestion zone. This pattern consists of a downward move, which began with the bearish black candlestick, followed by a gap down, which was quickly reversed on the next (bullish) candle.

This is the equivalent of an "oops" pattern, which suggests that price mistakenly gapped past support and then corrected itself. This scenario reveals a hidden zone of support (now turned resistance) at the bottom of a bearish candlestick.

This also corresponds with several candlestick highs just to the left of the signal. The upper resistance is similarly derived from a combination of the top of the black candle from the bullish belt hold, coinciding with several candle wicks. Thus, the resistance zone is 1.1018-1.1040.

Given how small this zone is relative to price action, the preferred time frame for this trade is the 15-minute chart (not shown), although the hourly chart would be permissible as well. On both time frames, the signals to look for would be bearish reversal divergence, pin bars, and bearish engulfing patterns.

The disadvantage of using the hourly chart is that it may provide an entry signal too late, forcing traders to use larger stop losses. Thus, the trade should be taken on whichever time frame provides the first clear entry.

It is worth giving this set-up two or three tries, but given how strong the downtrend is on the daily chart, it is likely that one or two would suffice.

Also, it would be useful to have at least two positions per trade so that part of the trade can be scaled out should trouble arise. In a trend trade such as this, it is less of an issue, but given the risk of a longer-term pullback, it is always advantageous to have that option.

By Kaye Lee, private fund trader and head trader consultant,

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.