This week’s featured trade is a “trade of the year” kind of setup based on technical levels.
In his short AUD/CAD post, ForexMindGames points out that there’s no solid support level below AUD/CAD’s current levels. In fact, he even thinks that the pair is due for a fall worthy of being a “trade of the year!”
What do you think? Is this something that you would take?
Potential Trade Setups
AUD/USD: Break and Retest?
The falling trend line on AUD/USD’s 1-hour time frame just got broken when the pair surged back above the .9700 major psychological handle. Is a retest in the works though? The broken trend line is just around the 61.8% Fib, which is near the .9650 minor psychological support. See the setup
USD/CAD: Head and Shoulders
USD/CAD just broke below the neckline of the head and shoulders chart pattern on its 1-hour time frame, suggesting that the recent uptrend may be over. The pair could still make a quick retest of the broken support area at 1.0300 before resuming its drop. How low can it go? See the setup
NZD/USD: Falling Channel
NZD/USD’s downtrend still seems to be intact as the pair is stuck inside a falling channel on its 1-hour time frame. Stochastic is moving down from the oversold area, suggesting that Kiwi bears are still in control. If that’s the case, NZD/USD could head back to the bottom of the channel once more. See the setup
Comdoll Event Highlights for June 3 to 7, 2013
As we can see from above, there will be lots of potentially market moving calendar events on deck from the comdoll-related countries. Still, some reports can be more closely watched than the others. For example, I’ll bet my new red high-heeled shoes that the comdoll bulls and bears will be watching the RBA statement tomorrow to see if the central bank will continue its easing program this month.
Australia’s GDP and trade balance, Canada’s IVEY PMI and employment numbers, as well as China’s trade balance data can also have the capacity to affect the comdolls’ price action. And let’s not forget about the big NFP report from the U.S. on Friday!
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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