Comdoll Trading Kit (Jan 30 – Feb 3, 2012): Market Preview

Comdoll Preview

Now that you’ve reviewed last week’s comdoll price action, it’s time to prepare your trade setups! Here are some comdoll events and significant technical levels you should watch out for this week:

Comdoll Event Highlights for January 30-February 3, 2012

With the big U.S. NFP report around the corner, I’m betting my best pair of shoes that we won’t lack volatility in our charts this week!

New Zealand has already fired the first salvo today with its building approvals report, but we’ll also see Australia’s trade balance, Canada’s employment and GDP numbers, and even China’s manufacturing figures. Of course, let’s not forget all the employment-related reports from the U.S.!

Comdoll Events for January 30-February 2, 2012

Significant Comdoll levels to watch out for

Remember when I posted about my STA strategy a couple of months back? Well, here’s something to help you out! I have already marked previous week and weekly ATR levels for you!


AUD/USD USD/CAD NZD/USD
Week Open (WO)
1.0644
1.0010
0.8238
Previous Week High (PWH)
1.0689
1.0162
0.8259
Previous Week Low (PWL)
1.0424
0.9982
0.8042
Top Weekly ATR (tWATR)
1.0793
1.0114
0.8354
Bottom Weekly ATR (bWATR)
1.0495
0.9906
0.8122
Other significant levels
1.0700, 1.0750
1.0000, 1.0050
0.8150

Comdoll Recap

What Moved the Comdolls Last Week?

The comdolls started the week strong despite mixed reports from the comdoll countries. Australia’s 0.3% PPI growth fueled concerns of an interest rate cut, but good vibes from Canada’s leading indicators managed to turn things around by the U.S. session. The comdolls pared back some of their gains though, when risk appetite took a backseat in the markets on Tuesday.

FOMC gang

Around the middle of the week the Fed’s decision to extend its low interest rates period brought back appetite for the high-yielding comdolls. Heck, traders even ignored the IMF’s decision to downgrade Australia’s economic outlook!

The comdoll-lovin’ remained for the rest of the week with both the Aussie and Kiwi making new three-month highs against the Greenback. Of course, it might have helped the Kiwi that New Zealand surprised markets with a trade surplus. By the end of the week, AUD/USD had risen by 193 pips, NZD/USD had climbed by 190 pips, while USD/CAD registered a 137-pip gain.

Best Setup of the Week: Simple Range Play on USD/CAD

As for the best setup of the week, I picked this range play on USD/CAD because of its simplicity. As we all know, if there’s one comdoll pair that has a tendency to range, it’s USD/CAD !

USD/CAD Best Setup

USD/CAD has been moving sideways since the other week, as it found resistance at the 1.0150 area and support near 1.0050. Had I set a short order at 1.0150 at the beginning of the week, I would’ve caught this potential 2.5-to-1 trade. I could’ve set my first profit target at the 1.0050 support, moved my stop to breakeven, and aimed for parity next. As you can see, the pair also hit the 1.0000 mark and I could’ve locked in the rest of my profits there.

Tomorrow I’ll be posting my comdoll calendar and the important comdoll levels we should keep our eyes on. In the meantime, do you have any questions? Call me, tweet me if you wanna reach me!

@Happy_pip Twitter
Playing with Comdolls Facebook page
Happy Pip Comdoll Corners
MeetPips.com

Till tomorrow!

Happy time

Other Popular Articles:

Comdoll Trading Kit (Jan 23-27) AUD/USD trade What is STA strategy?

5 comments

    • Happy Piphappypip Post author

      Hey Konkann!

      I use “comdolls” to shorten “commodity dollars” or “commodity-related currencies.”

      Because Australia, Canada, and New Zealand export commodities like gold and oil, the price action of their currencies, the Aussie (AUD), Loonie (CAD), and Kiwi (NZD), are usually influenced by news on commodities, and even economic reports from China, a huge buyer of commodities. Hope this helps! :)

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>