Comdoll Trading Kit (January 7-11, 2013): Midweek Market Analysis

Just like that, we’re halfway into the trading week! Here’s what’s moving the markets these days…

Midweek Market Analysis

Positive US earnings lift risk sentiment
It’s earnings season once more! Most traders have been glued to the tube these days, watching the release of earnings reports from large U.S. companies. Fortunately for riskier assets, earnings have been meeting or beating expectations so far as sales and profits have been positive.

Comdolls
Ranges, ranges, range…zzz
With barely anything going on in the economic scene this week, comdolls were stuck in consolidation for quite a while. Thanks to positive risk sentiment though, the Aussie, Loonie, and Kiwi have been able to score some gains for the past few days.

Les Mis: Clash of the Aussie and Kiwi?
This isn’t exactly market-related news but I can’t help but notice how two actors from comdoll economies duked it out in the Les Miserables movie. Who do you think did better, Hugh Jackman or Russell Crowe? If you guys haven’t seen it, you definitely should!

Potential Trade Setups

AUD/USD: Day Trade a Rising Channel
AUD/USD Rising ChannelHow about a 15-minute chart for the day traders out there? AUD/USD is finding support near the bottom of the channel. Oh and have I mentioned that Stochastic has just left the oversold territory? A tight stop below the consolidation would provide a good R:R if we aim for the top of the channel. What do you think? See the setup

USD/CAD: Strong Support at .9850
USD/CAD .9850 SupportThose who read the Comdoll Trading Kit know how much I love pointing out USD/CAD’s strong reaction to the .9850 handle. This time around the level is still intact as a support despite the number of attempts to break it last December. But does this mean that USD/CAD is on its way up? Watch this one, folks! See the setup

NZD/USD: Will the Trend Line Hold?
NZD/USD Rising Trend LineWho’s up for some trend trading? NZD/USD is near the rising trend line on the 1-hour chart but it looks like the bears aren’t done selling just yet. The .8350 minor psychological handle is a good area to watch if you’re planning on buying the Kiwi. Just make sure that you have your stop losses in place! See the setup

Comdoll Event Highlights for January 7-11, 2013

Calendar

It looks like most of the comdolls are still on vacation mode! There aren’t a lot of economic releases from Australia, New Zealand, and Canada for the next few days but this doesn’t mean that AUD/USD, NZD/USD, and USD/CAD are in for a boring week.

China is set to release a bunch of important reports towards the latter half of the week and these could have a huge impact on risk sentiment and comdoll action. Keep an eye out for China’s trade balance and CPI figures then!

Australia is also set to print a high-impact figure midweek in the form of its retail sales figure. Now that could be a news event worth trading, don’t you think?

Now let’s check out the important chart levels for AUD/USD, USD/CAD, and NZD/USD!

Significant Levels to Watch Out For


AUD/USD USD/CAD NZD/USD
Week Open (WO)
1.0478
0.9870
0.8305
Previous Week High (PWH)
1.0528
0.9945
0.8397
Previous Week Low (PWL)
1.0376
0.9386
0.8213
Top Weekly ATR (tWATR)
1.0547
0.9917
0.8376
Bottom Weekly ATR (bWATR)
1.0410
0.9823
0.8234
Other significant levels
1.0450, 1.0500
0.9840
0.8200, 0.8475

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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Have fun and good luck trading this week, friends!

Happy time

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