He also throws in a bit of fundies in his analysis, by cautioning that Chinese imports and Australian business conditions have been worsening lately.
According to his analysis, AUD/USD has already broken above the neckline of the pattern while NZD/USD has yet to make an upside break.
Check out the rest of the deets in his trade journal! Do you think I should jump in a long trade with either of these comdoll pairs?
Potential Trade Setups
AUD/USD: Range Resistance Play
Thanks to a couple of better-than-expected reports, the Aussie is having a breather against the comdoll bears. How long will it last though? The 0.9180 handle looks like a good place to short since it’s near a potential range resistance on the 1-hour chart. Think the pair will reach the level and then go down? See the setup
USD/CAD: Rising Wedge in the Making?
I haven’t really traded a lot of wedges before, but this particular wedge on USD/CAD’s 4-hour chart seems pretty solid. A short below the 1.0500 major psychological handle is a good idea if you think that we’ll see dollar weakness this week. See the setup
NZD/USD: Long-Term Trend Line
Who’s ready to buy the Kiwi? NZD/USD is currently at a very sweet trend line support on the weekly chart. What makes this setup more interesting is that it’s also near the 0.7700 major psychological support and that Stochastic is at the oversold area. Are you up for trading this one? See the setup
Comdoll Event Highlights for July 8 to 12, 2013
There aren’t a lot of comdoll events on this week’s schedule, but that doesn’t mean that the next few days will be any less exciting!
For one, the FOMC is set to print the minutes of their latest monetary policy meeting midweek, so we could see a lot of action across all dollar pairs. Aside from that, Australia will release its jobs report on Thursday, and this could lead to strong waves on AUD/USD’s chart.
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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