Got any comdoll trades this week? Take a look at the factors that have been driving AUD, CAD, and NZD price action so far!
Fresh batch of euro zone woes
Earlier this week, Forex Gump wrote about political troubles brewing in the euro zone. This caused a sharp selloff among most of the higher-yielders, prompting many to think that risk aversion might come into play once more. The problem is, not too many traders are willing to park their money in the Greenback as Fed interest rate expectations aren't looking too good.
Aussie going down under?
Weak Australian data combined with a downbeat RBA statement weighed on AUD/USD this week as the pair is currently in the red. As for the Loonie and Kiwi though, these currencies seem to be consolidating against the Greenback awaiting the top-tier reports towards the end of the week. Make sure you watch out for those red flags I noted in the calendar below!
After her Beyon-sync fiasco earlier this year, Queen B just made a stellar comeback by giving a fierce performance during the Superbowl a few days back. Heck, just watching a few clips of her set made me hit the gym in an instant! Do you think the Aussie, which is the worst-performer among the comdolls so far, could make that kind of rebound at this halftime mark of the week?
Potential Trade Setups
AUD/USD: Mid-channel Support at 1.0400
Boy, the RBA sure did a number on the Aussie! Luckily, the 1.0400 seems to be holding as support, especially since it's a possible mid-channel support on the 1-hour chart. A stop below today's lows could give a good trade ratio if you're planning on buying AUD/USD. Care to give it a try? See the setup
USD/CAD: Support-turned-resistance at parity
If the BOC's dovishness is a tragedy, why is USD/CAD holding at parity? It looks like USD/CAD is about to revisit the 1.0000 area, which has served as a good intraweek resistance last week. Make sure that your eyes are peeled for a possible retest of last week's major level! See the setup
NZD/USD: Ascending triangle in the making
Here's one for the long-term comdoll traders! NZD/USD found resistance at the .8465 area, which has served as a resistance around this time last year. But with the higher lows popping up on the daily chart it looks like we're about to see a descending triangle play out. Will it break to the upside this week? See the setup
Comdoll Event Highlights for February 4-8, 2013
It looks like the Aussie could catch a bunch of good waves this week as Australia has two major events coming up, namely the RBA rate decision tomorrow and the jobs data release on Thursday. Don't forget that China is set to print its trade balance and CPI on Friday, too!
As for Canada and New Zealand, both economies are also set to report their jobs figures later on this week so y'all better do your homework if you plan to trade these events!
With all these reports due this week, you might want to be extra careful with your trades. As a good start, you could mark these important chart levels for AUD/USD, USD/CAD, and NZD/USD with me!
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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