A1 Trading Company

July 11, 2022

Best Forex Setups To Trade Now

Frank Cabibi

After last week's events, certain pairs look to be reacting heavily as volatility increases. Current behavior is starting to shape long and short ideas across the charts. Here are some of the best forex setups we are looking at right now followed by our analyses behind them.

Best Forex Setups


best forex setups

Swiss-Yen came down to support on a rising trend line on the 1D timeframe. Price has been falling until today when the Yen was stronger last week. The pair also has support around the 137.797 level where there is a previous top should it fall more. Heavy resistance lies up at the previous highs of 143.670s. If CHFJPY can bounce here and close above Friday's price, we might be able to see a shift back to the upside and a test on this level.

best forex setups
Switzerland vs Japan's GDP growth and inflation

The image above shows GDP growth for the two currencies on the most recent quarter reported. Although both saw slight growth in GDP, Switzerland's economy is doing better overall because the economy is not shrinking despite the rise in interest rates.

Japan, on the other hand, is still seeing its economy shrink without even any aggressive monetary policy. The BOJ wants rates to hit 0% from -0.10%, but there is still no clear timeframe on when that move will occur. So, CHF still has a slight edge over the Yen even though they are two safe havens.


NZDCAD has come down to a support level on the 4H timeframe and is testing a previous bottom at 0.79480. A break and close under could mean significant more downside, but we would need to see that confirmation first. If price bounces, a double bottom will form and cause that level to become a stronger level of support. Also, a bounce could take the pair up to 0.80543 where there is some heavy resistance in the way. So, there are two considerable short setups around these two prices. One is betting on the break lower and the other is shorting the bounce.

Canada's economy has a strong advantage over New Zealand's. Both economies depend on commodity performance, but Canada seems to be going through expansion more so than NZ. Canada saw declining unemployment for the past year as it is now at the lowest level on record since 1976.

best forex setups
Canada unemployment rate

It's also true that NZ has falling unemployment, however, output is still stronger on the loonie's side. Canada's GDP growth is still higher than the kiwi's while inflation is not rising as harshly in Canada than in NZ.

Still, retail is vastly long this pair. Institutions want less and less to do with the kiwi, however. And over 60% of big money is short this pair.


best forex setups

GU touched a lower low in Friday's trading session and is now on the rise today. This could mean that price is going to try to test resistance around the falling trend line on the 4H timeframe. Because of price action and trend movements, it looks like the down trend will continue. So, a bounce to the upside could be a short setup to watch this week.

England's economic outlook has become worse after the recent leave of former Prime Minister Boris Johnson. The US and UK alike are suffering from slowing economic growth on a broad scale, but investors don't have faith that BOE will be able to curb inflation. The US has a better chance of doing so because of their central bank's policy to control it at all costs.

best forex setups

The UK's Consumer Price Index has reached record highs and is continuing to fly higher with each passing month. There is no sign of England getting anywhere near that 2% inflation target. Although the US has a ways to go as well, at least they're prioritizing this more even at the expense of slowing economic growth.

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

My Crazy Trade On Gold: Up $8000

Hey Traders! This week has been wild for Gold! Thanks to insights from the EdgeFinder, I've been in a trade on XAUUSD since May 3rd. Initially, I jumped in due to weak jobs and PMI data, sticky inflation, and solid support/market structure. Here’s a quick look at my gold trade: Entry Recap: On May 13th, […]

Read More
Is Gold the Buy of 2024?

Rates move lower after the BoE announced their latest monetary policy report to keep rates unchanged at 5.25%. Unemployment came in higher this morning with the 30-year bond auction coming up Thursday afternoon. In the midst of a slow news week in the US, gold is sitting at a very favorable position according to the […]

Read More
Yields Fall Ahead of Earnings

More earnings reports come out this week is causing an inflow of buyers in the equities market while yields begin the week on a decline. Last week's Fed meeting showed up as "less hawkish" than investors expected causing risk appetite to increase at the start of the summer months. EdgeFinder Analysis As we come off […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenucross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram