Are the comdolls in for a midweek reversal? Here are some potential turnaround scenarios for AUD/USD, USD/CAD, and NZD/USD.
Potential Trade Setups
AUD/USD: Testing Channel Support
Bounce or break? AUD/USD is currently hovering around the bottom of the rising channel that’s forming on its 1-hour time frame. Stochastic is deep in the oversold region, hinting at a potential bounce, but it seems bears have enough energy. A bounce could take the pair back to the middle of the channel though!See the setup
USD/CAD: Triangle Forming?
Heads up! USD/CAD seems to be encountering a barrier at this point, which could mean that its current rallies might pause. The pair is forming a symmetrical triangle and is currently testing the top of the triangle. At the same time, stochastic has turned from the overbought zone and is suggesting a possible dip.See the setup
NZD/USD: Approaching Support!
When will the bleeding stop? NZD/USD has been getting battered on the forex charts, as the pair had a steep tumble in the past couple of weeks. It is approaching a strong support level for now and it remains to be seen if the floor will hold or give way. Stochastic is pointing up, which suggests that Kiwi bulls are ready to charge. See the setup
Significant Levels to Watch Out For
|Week Open (WO)||0.9588||1.0447||0.8282|
|Previous Week High (PWH)||0.9758||1.0462||0.8544|
|Previous Week Low (PWL)||0.9572||1.0270||0.8274|
|Top Weekly ATR (tWATR)||0.9693||1.0513||0.8388|
|Bottom Weekly ATR (bWATR)||0.9484||1.0382||0.8176|
|Other significant levels||0.9450, 0.9700||1.0450, 1.0550||0.8250, 0.8100|
In case you’re wondering what ATRs are all about and how I computed those figures, make sure you check out my entry explaining my trading strategies.
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