This week’s featured trade is using a possible break in USD/CAD’s rising trend line on the lower time frames.
Who’s up for swing trading the comdolls this week? In his post, forum newbie jensen is shorting USD/CAD. In this case he’s planning to take profits at the 1.0100 handle.
Jensen believes that USD/CAD’s rising trend line on the 1-hour chart has already been broken. Watch out though, as he also believes that the pair’s triangle is still intact on the higher time frames.
Do you think that USD/CAD is sporting a downside breakout, or is the pair still in consolidation mode?
Potential Trade Setups
AUD/USD: Stalling at .9750 Support
I don’t mean to be a buzzkill for y’all Aussie bears out there, but AUD/USD is currently sitting right on a strong support level around the .9750 area. Stochastic on the daily time frame has reached the oversold area, suggesting that the pair is ready to bounce soon. See the setup
USD/CAD: Rally to Resume?
Is the dollar rally about to resume? USD/CAD has just finished pulling back to the rising trend line on the 1-hour time frame, suggesting that the pair could head north once more. At the same time, stochastic is moving out of the overbought region, as USD/CAD could be on its way to test 1.0300 again. See the setup
NZD/USD: Time for a Major Correction?
After its strong dive last week, NZD/USD seems to be gasping for air as it looks ready to pull up to the Fibonacci retracement levels on the 4-hour time frame. The 61.8% Fib level is close to the .8400 major psychological level and former support area, which suggests it could act as resistance later on. See the setup
Comdoll Event Highlights for May 20 to 24, 2013
Unlike in the past couple of weeks, we only have a handful of reports from commodity-related countries this week. This time there’s only Australia’s Westpac consumer confidence data, Canada’s retail sales, and New Zealand’s inflation expectations.
The U.S., on the other hand, is set to print some housing numbers, the initial jobless claims data, and a durable goods orders report. Oh, and keep an eye out for any speeches made by FOMC members, will you? With our attention fixed on the Fed’s QE plans, it doesn’t take much to extend the dollar’s rally.
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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