This week I’m featuring Meetpips.com user TrendmeetFriend. He did the FX-Men proud with his AUD/USD trade execution!
Although he ended up with a break even trade, you have to give TrendmeetFriend props for his detailed trade journal and sound fundamental and technical reasons for entering the trade. His adjusted stop loss was eventually hit, but you can’t blame the guy for protecting his profits!
How could you have traded this chart better?
Potential Trade Setups
AUD/USD: Descending Channel
Heads up! AUD/USD is currently testing the top of the falling channel on the 1-hour time frame, and it appears that resistance is holding. Stochastic is heading south, suggesting that Aussie bears are in control for now. The question is, how low can AUD/USD go? See the setup
USD/CAD: Support Level Holding?
It looks like USD/CAD is having a tough time heading any lower! Resistance turned support around the 1.0375 area is still holding like a boss while stochastic looks ready to head right back up. If USD/CAD bounces, it could head back to its recent highs around 1.0600 while a breakdown could take it back to 1.0200. See the setup
NZD/USD: Bullish Divergence
Don’t look now but NZD/USD might be in for a strong bounce! On its daily time frame, the pair has made a bullish divergence as price made lower lows while stochastic made higher lows. There seems to be enough upward momentum, but you should probably wait for more confirmation if you plan to jump in! See the setup
Comdoll Event Highlights for July 15 to 19, 2013
As you can see from the chart above, Australia and New Zealand will be void of major report this week. Meanwhile, Canada is set to print potential market movers like the BOC interest rate decision, retail sales data, and even the inflation report. Does this mean that the Aussie and Kiwi will most likely trade on comdoll appetite? Or will the dollar’s price action rule AUD/USD, USD/CAD, and NZD/USD once again?
If you’re still undecided how to trade the comdolls this week, better take a look at these potential inflection points first:
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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