A few of the clearest currency pairs to trade today

You already know about the importance to choose the right currency pairs to trade each day.

Look, even if you have the best system in the world, if you choose the wrong currency to trade you wont get too far.

On the other hand, if you are using an average system, but you trade the right currency pairs each day, you’ll be fine in the long run.

What’s your take about this?

How do you choose which currency pairs to trade each day?

Now, these are a few of the currency pairs that I believe are trading in a very clear market condition.

GBPUSD Analysis

The GBPUSD is trading in a very clear bearish condition, let me show you why I think its bearish:

GBPUSD

Since it broke through an important LT support level (1.6711), it is now likely to continue its way down until it reaches its next LT level at 1.6245.

It is currently trading around 1.6570, so we’ve got more than 300 pips before we hit the next level.

So we’ve got plenty of room to plan our trade.

USDCAD Analysis

The USDCAD traded for a few weeks near a LT level, around 1.0928, but a few days back it broke through the lower extreme of the short term range, triggering a bearish condition.

Let me show you how it looks like in the short term charts:

USDCAD

As long as the USDCAD keeps trading below 1.0864 I’ll be looking for short opportunities.

AUDJPY Analysis

This is another currency pair that is trading in a very clear bullish condition.

It traded for a few months in a range… but a few days back it broke the upper extreme of the range triggering a bullish condition.

Here is how it looks like:

AUDJPY

So its clear that the AUDJPY is trading in a very clear bullish condition. There are more than 250 pips before we hit the next LT level at 99.94.

Right now I’m just looking for clearer levels in the short term charts to start looking for long opportunities.

Your Turn

These are a few of the currency pairs that I think have clear market conditions… What do you think about them?

What other currency pairs are you trading?

Share your thoughts.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Ahsun Ashfaq

    Hi Raul

    What you think about CADCHF? I am long in that pair. It just broke its resistance level and currently have very clear market condition?

    Ahsun

    • Raul Lopez

      It’s still bullish, it is trading at a very ST important level, as long as it keeps trading above 0.8409 I’ll be looking for long opportunities…

      Good luck!

  • Muhammad Ali Awan

    Hi Raul
    Thanks to you. Here is my Monthly statement by following your advice.
    Thanks a lot. Hope you like that.

    • Raul Lopez

      Congrats Muhammad! You’ve got pretty good pip there!

  • Muhammad Ali Awan

    Hi Raul
    Thanks to you. Here is my Monthly statement by following your advice.
    Thanks a lot.

    • Raul Lopez

      Thank you for following my articles Muhammad!

      Good luck!

  • pduarte

    Hello Raul,

    Hope to find you Ok.

    I agree with your analysis, and i have some more pairs that I am trading.

    NZDUSD – Short
    GBPCAD – Short
    AUDCHF – Long
    EURAUD – Short.
    EURCAD – Short
    NZDCAD – Short
    AUDJPY – With a buy stop at 97.37
    GBPUSD – With a Sell stop at 1.6524

    What do you think of this trades?

    Cheer’s,

    Paulo

    • Raul Lopez

      Hey Paulo,

      Here is what I think about each one of your charts:

      NZDUSD it’s bearish
      GBPCAD bearish
      AUDCHF bullish
      EURAUD bearish
      EURCAD bearish
      NZDCAD bearish
      AUDJPY, removed my pending orders due to the weekend, but also bullish
      GBPUSD, removed my pending orders due to the weekend, but also bearish

      Se we are pretty much at the same page Paulo! Good one!

      Have a great weekend!

      Cheers,

  • Alex

    Why are you looking to short the AUD/JPY if it broke the resistace level?

    • Raul Lopez

      Hey Alex, sorry about that, that was a typo (fixed it already)… I meant long opportunities!

      Thanks for letting me know…

      • Alex

        Thanks, your insight means alot to me/us! Seeing that i was looking at the markets the same way you were, a profesional trader and teacher, makes me feel good knowing that i am analyzing markets corectly at motivates me alot. Thanks again for taking time in helping us. God bless you ;)

        • Raul Lopez

          No problem Alex, I’m glad it is useful…

          Let me know if you need anything else!

  • Eric Aroh

    Hi Raul,
    These are very nice trades with excellent R:R ratio.
    I have had AUDJPY (LONG) and USDCAD (SHORT) on my watch list since 22Aug2014 (using H4 charts). In addition I also have NZDJPY (LONG), NZDUSD (LONG) on my watch list. I will trade only those with the clearest market conditions, and seek opportunities to ride the prevailing LT trend (Daily; 200 records). I will stay away from correlated pairs,an apply Currency Strength Meter in my final selections.
    Thanks, Eric

    • Raul Lopez

      Hello Eric,

      Be careful with the NZDUSD, a few days back it broke through an important support level triggering a bearish condition…

      What makes you think it will move up?

      Thanks!

      • Denny Mursali

        NZD/USD daily chart at 0.8410, it used to be a support level, now is a resistance level.
        if it can break that level, it will be bullish.

        are you agree with that?

        • Raul Lopez

          That’s correct, now it is a resistance level, and it will have a hard time trying to get through that level…

      • Eric Aroh

        Hi Raul,

        Thanks for your comments.

        Like I indicated earlier NZDUSD is on my watchlist to go LONG.

        I expect a Kiwi recovery due to the following:

        * A bullish morning star was formed yesterday – Daily charts.

        * However, prices are too close to a strong resistance (@ 0.8420) to justify going LONG NOW from R:R perspective

        * Current absence of clear bearish signal obviates taking SHORT position now.

        * LT trend is up

        BUT I am still waiting for a strong bullish signal after it clears the referenced resistance (@ 0.8380 – 0.8420 zone).

        Thanks,

        Eric

        • Raul Lopez

          Ok, I now see what you are looking at…

          I’m worried a bit about that resistance that you are talking about… since the NZDUSD broke that level down, now I think it is likely to continue its way down…

          But only time will tell…

          Have a great weekend and I see you on Monday!

  • Ahsun Ashfaq

    Hi Raul

    Hop you are doing good.

    I am also looking at GBPUSD but the way i have drawn S/R are different than you taught us. I suspect i am mistaken somewhere. Please correct me if i am wrong.

    The way i am seeing GBPUSD is it at a long term support level and he you can see it is trading in a range and i am waiting for a breakout

    Second thing you wrote that “if a level breaks twice then get rid of it” (please explain how you consider if a level is break twice and useless.I am referring to false breaks at S/R levels where market breaks through a level and then quickly respects it. What you do in that situation do you pass on that level as it is break?) I am posting a screen shot please correct me if this level already breaks and useless(according to your ebook) and also tell me why you have not considered it your Long term level!

    The SF box helps us to determine that market is rejected from a level! Please tell me how can we figured out that market is rejected from a level when we dont get an SF box?

    And for AUDJPY do not you think its direction is not clear and still in a range?

    I am sorry for asking so many questions :-D.

    Once again thank you for your precious time

    Ahsun

    • Raul Lopez

      Hello Ahsun,

      When the market breaks though an important level twice we need to get rid of it… if the market is not taking into consideration that level, why should we? The level that you have at 1.6923 is not valid anymore, the market already broke through there twice…

      You are also placing levels where the market has been rejected only once… they could be just random rejections, like the one you’ve got at 1.6568…

      And I think the AUDJPY is trading in a bullish condition because it already broke through an important resistance level, we just need to wait for clearer levels in the short term charts!

      Let me know if you need anything else!

      • Ahsun Ashfaq

        Thanks for your clarification Raul it is pretty much clear now :)
        For level 1.6568 i have drawn it after seeing a tiny rejection before that massive false break. So what you recommend for a proper rejection to be considered as level? minimum of 5 6 candles(creating a proper swing) that should be a proper rejection worth drawing??

        Ahsun

        • Raul Lopez

          Every valid rejection creates a complete swing…

        • Ahsun Ashfaq

          Hi raul i have found one chart so i can give example of what i am trying to ask…
          Here we have a strong level with 4 rejection plus one tiny rejection then suddenly market breaks through that level and quickly reverses and respect this level again.Should i still consider this as an important level?

          Do you consider that level to be broken( as it is broke twice)?

          What do you do when market false breaks an important level which have several rejections and how do we know that it is still in play…

          Thanks

          • Raul Lopez

            You should not consider that level, again, it was broken twice…

            Look, we use S&R because we think the market will take those levels in consideration… but if the market doesnt take them in consideration, why would we take them in consideration… it’s simple…

            that’s the reason we need to get rid of that level…

            Have a great weekend!

          • Ahsun Ashfaq

            Thank you very much Raul. It is clear now :)

            Have a good weekend

  • Waqas Khan

    where u didn’t post the hourly charts of GU and AJ?

    • Raul Lopez

      I didnt post them…

  • Waqas Khan

    thank u for this post
    i am interested in GBPUSD and AUDJPY

    • Raul Lopez

      Yep, both of them seem clear to me…

      And what about the USDCAD? You dont like it?