We’re going all out on the comdolls this week! Check out this AUD/NZD trend trade and see if this setup is something that you would also trade!
In his long AUD/NZD trade newbie forum user elisab is planning to buy on retracements in the pair’s trend and he’s planning to take profits at the 1.2500 level. Is this something that you would take as a long term trade? Give him a shout out!
Not bad for a comdoll cross trade, don’t you think? Congrats, buddy!
Potential Trade Setups
AUD/USD: Doji Alert!
This pair made a strong clean break below the 1.0200 major psychological support level after the RBA cut interest rates yesterday. However, the 1.0150 area seems to be holding as support also as a long-wicked candle appears to be forming. Will this turn into a doji? And does this mean that AUD/USD could head back up? See the setup
USD/CAD: Resistance Turned Support
Is a potential bounce in the cards for USD/CAD? The pair appears to be edging closer to testing the former resistance level around 1.0020, which is in line with the 61.8% Fibonacci retracement level. Stochastic seems to be making a bullish divergence, suggesting a possible move north. Set your stops below parity if you’re going long! See the setup
NZD/USD: Bounce or Break?
Similar to AUD/USD, this pair is currently testing the support level on its 1-hour time frame. Will it bounce or will it break? Stochastic is on middle ground but is pointing south, suggesting a potential breakdown below .8400. If Kiwi bulls charge though, the pair could bounce back to its recent highs near .8600. See the setup
Comdoll Event Highlights for May 6 to 10, 2013
This week Australia, Canada, and New Zealand will all release their employment numbers. March was a pretty crazy week for Canada and Australia so this month we’ll see if we’re seeing a start of a trend.
Other major reports that we simply SHOULDN’T miss include the RBA’s big interest rate decision tomorrow and China’s trade balance data on Wednesday. The G7 leaders will also meet over the weekend, so get ready for some profit-taking or extra volatility ahead of the meeting.
Well, that’s it for my initial thoughts this week! But If you’re like me and you’re still unsure where the comdolls will go, maybe a look at the potential inflection points on AUD/USD, USD/CAD, and NZD/USD will help us out.
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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