Planning on trading the comdolls this week? Let me know what you think of these setups I spotted on AUD/USD, USD/CAD, and NZD/USD!
Potential Trade Setups
AUD/USD: Bullish Divergence
Heads up, Aussie bears! A quick bounce could be in the cards as AUD/USD has formed a bullish divergence on its 4-hour time frame, so y’all be careful with your short positions, aight? The bounce has already shown a bit of momentum as stochastic crossed up and the pair is testing the .9200 resistance once more.See the setup
USD/CAD: Ranging Again?
Boy, oh boy, does USD/CAD love its ranges! The pair is moving sideways again, as it found support near 1.0450 and resistance at 1.0550. The pair just fell after testing the 1.0550 area and appears ready to test the bottom of the range again. Make sure you watch stochastic if you plan to play this range! See the setup
NZD/USD: Rising Channel
It looks like the Kiwi’s uptrend is still intact, as the rising channel on its 1-hour time frame has been holding like a boss! The pair bounced upon opening this week and appears on its way back to the top, based on the stochastic signal. If it keeps climbing, it could test resistance at .7900. See the setup
Comdoll Event Highlights for July 1 to 5, 2013
It’s NFP week so I’m sure a lot of us are expecting big moves from the major currencies! As you can see from the calendar, the Uncle Sam isn’t the only country with major news to share.
The RBA will also hit the spotlight with its interest rate decision, while Canada is also set to release its employment numbers on Friday. Given the string of disappointing results lately, many of my forex friends are expecting downside surprises for these reports. How about you? Are you overall bearish for the comdolls this week?
If you still haven’t formed a bias on the comdolls this week, then you should at least mark the potentially significant chart levels on AUD/USD, USD/CAD, and NZD/USD. We never know just how many other traders are watching the same inflection points!
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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