First is the retracement setup on GBP/CAD, which is already a risk-free trade since digitalgypsy was able to move the stop to entry + 5 pips.
Next is the NZD/JPY range play, which got some momentum from the weak Chinese PMI released earlier today.
I think it’s a really good idea to look at the crosses for now since it has been extra tough to predict the dollar’s behavior. How about you? Any comdoll setups you’ve taken this week?
Potential Trade Setups
AUD/USD: Resistance at .9300
The Aussie bulls and bears are in for a tough battle! AUD/USD is almost at the .9300 psychological handle, which has been a solid resistance since mid-June. Not only that, but Stochastic is also sitting in the overbought region! Will the handle break this week, or will the bears finally step up?See the setup
USD/CAD: Rising Trend Line
USD/CAD is only a couple of pips away from the 1.0300 handle, which is near the rising trend line on the daily chart. Stochastic is also on the oversold area, but it hasn’t crossed just yet. You can wait for a retest and check the candlestick patterns if you’re not too sure about the Loonie’s possible weakness. See the setup
NZD/USD: Long-Term Trend
Last up is a sweet and simple trend play on NZD/USD. The Kiwi has been quietly trading higher against the dollar since late last year and it doesn’t looklike it’s stopping anytime soon. A stop just below the trend rising trend line could still give you a good risk ratio if you think that the pair is on its way to new highs. See the setup
Comdoll Event Highlights for July 22 to 26, 2013
It looks like the comdolls are in for a pretty exciting week, as there are some red flags lined up!
Tomorrow, Canada will be printing its retail sales data while Australia will be releasing its CPI figures on Wednesday. As for New Zealand, the RBNZ interest rate decision is coming up and it will be interesting to see if Wheeler will jump in the “forward guidance” bandwagon as well.
But 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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