January 5th, 2026 Currency Update 📈
As we kick off the first trading week of 2026, here’s a brief synthesis of the high-conviction directional recommendations from our recent Daily Edge Reports across major pairs and gold. These views are filtered through liquidity, structure, and asymmetry on H4/Daily timeframes—focusing only on the core biases and trade ideas (no noise, just the edge).
Key Pair Recommendations Summary:
| Pair | Bias | Core Reasoning & Setup Idea | Risk Note |
|---|---|---|---|
USD/CHF |
Bearish 📉 | USDCHF is going down – Fade USD strength on liquidity sweeps below key structure; target mean reversion extremes. | Watch for CHF safe-haven flows reversal. |
USD/CAD |
Bearish 📉 | USDCAD is going down – Extreme retail longs + oil support; look for Setup #3 (ADR x2-3 reversion) shorts on H4 reclaim failures. | CAD commodity tie could cap downside if oil spikes. |
EUR/USD |
Bullish 📈 | EURUSD is going up – Institutional bias building; potential Setup #1 (sweep → BOS → reclaim) longs above daily imbalances. | Risk-off events could delay momentum. |
GBP/USD |
Bullish 📈 | GBPUSD is going up – Clean HTF uptrend; coiled compression eyeing London/NY expansion breakout (Setup #2). | BoE dovishness vs. peers a wildcard. |
AUD/USD |
Bullish 📈 | AUDUSD is going up – Risk-on theme + retail extremes; A+ mean reversion longs on sweeps of lows. | China data sensitivity high. |
GOLD (XAU/USD) |
Bullish 📈 | Gold is going up – Safe-haven + USD weakness alignment; target liquidity voids above recent highs with asymmetry (RR ≥1:5). | Yield spikes could induce temporary pullbacks. |
Overall FX Market Theme:
Clear USD weakness dominating early 2026 flows—fading retail USD longs where technicals align offers the highest asymmetry. Stay patient for clean structure; no forcing trades in thin holiday liquidity.
Calm, objective, high-probability edges only. The market comes to us. Trade Forex smart 🚀
Category: Forex Daily Report