If forum member elisab is to be believed, the Kiwi is still overvalued. He recently pointed out NZD’s trade-weighted exchange chart, which shows the Kiwi’s average performance against its counterparts. Looking at the chart, we see that the Kiwi is still far from its previous lows.
What do you think? Time to sell the Kiwi?
Potential Trade Setups
AUD/USD: Mini Range Support
The Aussie is currently finding support at the .9400 major psychological area, which has been serving as a pretty good support for the pair this week. Targeting the .9480 area could still give you a couple of pips especially if you place tight stop losses right below the major handle. See the setup
USD/CAD: Bearish Pennant in the Making?
USD/CAD is consolidating on what looks like a bearish pennant on the 1-hour chart. A break below the 1.0150 psychological support could drag the pair all the way to parity. On the other hand, it could also break to the upside and reach its former highs. Which scenario do you think is more likely? See the setup
NZD/USD: Channel Support Retest
Here’s one for trend traders! After breaking below its falling channel last week, NZD/USD is once again testing the pattern’s support area. Do you think that the Kiwi is ready to go up? A stop below its former lows could still give you a good risk ratio if you aim for the channel’s resistance area. See the setup
Comdoll Event Highlights for June 10 to 14, 2013
Not much on the calendar this week, as we only have the Chinese inflation report today. The RBNZ will make headlines on Wednesday though, when it announces its interest rate decision. Then, Australia will likely steal the spotlight on Thursday when it prints its employment numbers. Finally, the U.S. will take center stage on Friday with the retail sales data. Pretty chill week, don’t you think?
Or not. Remember that investors are not just considering economic reports now. There’s the overall U.S. economic performance to consider as well as the price action of equities across the world. And if you’re really focusing on comdolls, you should also consider how commodities and risk sentiment are faring.
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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