Midweek Market Prep
Woah woah woah! These major currencies seem to be all over the place these days. In particular, as Forex Gump mentioned, the commodity currencies no longer seem to be following the usual market correlations lately and he gave 3 possible reasons why.
For now, it looks like currency-specific events would continue to rock the currency pairs as central bank officials have been talking about their monetary policies. On top of that, there are a few monetary policy meeting minutes set for release for the rest of the week which could set the tone for interest rate expectations.
That’s it for me today! I’m still looking for a trade setup this week as I’m aiming to bounce back from my recent NZD/USD heartbreak. Got any tips for me?
Potential Trade Setups
AUD/USD: Resistance at 1.0350?
While you’re wondering why the 4h falling channel is breaking, it’s probably because a RISING channel is starting to form on the lower time frame. AUD/USD is about to reach the 1.0350 handle, which is near the mid-channel resistance on the 1-hour chart. Think this setup will hold till the end of the week? See the setup
USD/CAD: Possible trend line support
Calling all comdoll bears! USD/CAD is about to touch the rising trend line on the 1-hour chart, which isn’t far from the 1.0100 major handle. Stochastic is near the oversold region, too, so you better watch out for a possible retracement trade! See the setup
NZD/USD: Head and shoulders in the works?
As much as I’d like to not look at the Kiwi for weeks, spotting another setup is a good way to get over my recent NZD/USD loss. The pair is currently testing the .8550 area, which is near the neckline of a rough head and shoulder pattern. Remember to wait for a breakout before you short this pair! See the setup
Comdoll Event Highlights for February 18-22, 2013
As you can see, there aren’t a lot of major events for the comdolls this week. Only the Canadian retail sales and the Canadian CPI could be the tradeable events, as well as the RBA monetary policy meeting minutes due tomorrow.
Don’t forget to keep an eye out for the U.S. data this week, too! There are no releases from the U.S. today as traders could be prepping for the U.S. PPI, FOMC meeting minutes, and CPI data due midweek.
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.
Chips, dips, and lots and lots of pips!
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