A pair I have been watching for a long time now is AUD/NZD. This pair fell from highs of around 1.37 back in 2011 and if we look at the monthly chart, it has been winding sideways over the 7 years!

December printed a long tail pin bar and January has so far continued this uptrend with a strong bullish bar on the monthly although not closed yet as we are still in January. However if we draw some channel lines on this sideways movement we can see that we have had a breakout above this downward trend line and have now broken back above it.

If we switch to the weekly chart we can see a BUEB (Bullish engulfing bar) formed last week in line with the monthly reversal.

When this occurs, I will take a look a the lower timeframe charts such as the 1 hr or 4 hr to see if I can find a good entry point on a lower timeframe chart to give me a low risk trade with massive upside on the weekly chart.

So this week, I will be keeping an eye on this pair.

This is in no way financial advice, I am simply sharing with you my views on the current forex situation. You must of course always make your own trading decisions and never risk more than you can afford to lose.

The best way to start trading is with a demo account to practice your trading methodology and once you can consistently make returns on your demo account then start out with a trading account that allows you to place small positions and always use a stop.

As always I wish you all the best with your trading.