This week’s featured trade is a potential short on a comdoll cross, namely EUR/AUD. Check it out!
He pointed out that a “Wolfe wave” pattern has formed on the pair’s 1-hour time frame, but it appears that the selloff took place early. The pair has spiked to the 1.3500 level and dropped back to 1.3410 earlier today.
Do you think that the pair can still climb up to 1.3550 before making another drop? Or is this a missed trade already?
Potential Trade Setups
AUD/USD: Descending Triangle Breakout
I mentioned last week that AUD/USD is stalling at a long-term support. If we zoom in on the 1-hour chart we’ll see that the Aussie bulls and bears are still at an impasse. The pair is on a descending triangle with its support at the .9615 area. Will AUD/USD make new lows or will the triangle break to the upside? See the setup
USD/CAD: Uptrend Still Intact!
USD/CAD’s uptrend is still intact judging by the unbroken rising trend line on the 1-hour chart. A stop loss just below the trend line is a great idea if you think that the pair still has room to rise. But if countertrend plays are your thing, then you might want to wait for a break below the 1.0300 handle before you jump in. See the setup
NZD/USD: Support at .8050?
Just like the Aussie, NZD/USD is finding a hard time sustaining its losses on the longer time frames. The pair is stalling at the .8050 psychological support which had served as resistance and support in late 2012. Will the level stay intact this month? Picking tops and bottoms is always tricky, so be careful with this one! See the setup
Comdoll Event Highlights for May 27 to 31, 2013
As you can see from the schedule above, there aren’t a lot of major reports scheduled for the comdolls this week. In fact, the only major events are the BOC interest rate decision and Canadian GDP release!
However, recent price action has shown us that dollar pairs have been very sensitive to U.S. economic data as the Fed is mulling a gradual exit from its stimulus program. With that, don’t forget to keep tabs on the CB consumer confidence report and the preliminary GDP figures from Uncle Sam.
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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