For our featured trade this week we’re setting our sights on NZD/USD!
MeetPips.com trader Dimitriy Zolotov posted his thoughts on the comdoll pair. Not only did he point out the Bollinger Bands on the daily chart, but he also gave a detailed fundamentals argument on why NZD/USD could fall further!
Do you agree with his points?
Potential Trade Setups
AUD/USD: Channel Support
AUD/USD is hitting a support at the .9000 major psychological handle near the bottom of a falling channel. With a bullish divergence popping up on the 4-hour chart, the Aussie bulls are getting ideas. What do you think? Is this pair headed higher? See the setup
USD/CAD: Resistance at 1.0430?
I’m taking a leaf out of Big Pippin’s book this week! See, the Loonie bears are likely to encounter resistance at a noticeable area of interest. A tight stop could work if you believe that the pair is headed lower, but it also doesn’t hurt to wait for a couple of bearish candlesticks before you jump in! See the setup
NZD/USD: Falling Channel Action
Something just broke and no, it’s not my heart this time! NZD/USD just blasted below the mid-channel support on the 4-hour chart and it looks like it could head for the channel bottom. You could jump in now if you’re one of the Kiwi bears, but watch out for possible break-and-retest scenarios! See the setup
Comdoll Event Highlights for August 19 to 23, 2013
It looks like the comdoll gang could be in for another relatively quiet trading week, as the calendar shows that only a few events are lined up in the coming days. In fact, most of the action on AUD/USD, USD/CAD, and NZD/USD could depend on U.S. events, such as the release of the FOMC meeting minutes and the Jackson Hole Symposium later on.
Canada is set to release a few reports, namely its retail sales and CPI figures, so keep an eye out for potential swings on USD/CAD.
If you’re unsure how to position yourself for trading this week, it might help to take at these potential inflection points on the comdoll charts:
Significant Levels to Watch Out For
|Week Open (WO)|
|Previous Week High (PWH)|
|Previous Week Low (PWL)|
|Top Weekly ATR (tWATR)|
|Bottom Weekly ATR (bWATR)|
|Other significant levels|
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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