Comdoll Trading Kit (September 16 to 20, 2013): Potential Trade Setups

Anyone planning to trade the comdolls during the FOMC statement? Here are some setups I spotted on AUD/USD, USD/CAD, NZD/USD. What do you think?

Potential Trade Setups

AUD/USD: Rally Overdone?
AUD/USD ChartAUD/USD has formed a bearish divergence on its 4-hour time frame, as price made higher highs while stochastic made lower highs. Does this mean that the current rally is already overdone? The .9300 to .9350 area seems to be a stubborn resistance level and a selloff might take the pair back to the .9100 area. See the setup

USD/CAD: Divergence Alert!
USD/CAD ChartThat 1.0300 handle is still holdin’ like a boss! USD/CAD has been having trouble making any headway below that region, as it also coincides with a rising trend line on the daily time frame. Aside from that, a bullish divergence has formed and is hinting that a bounce might take place. See the setup

NZD/USD: Rising Trend Line
NZD/USD ChartWill the Kiwi keep reaching for new highs? The steep rising trend line on its 1-hour chart is still holding up really well, as the pair appears ready to make a test of the .8200 major psychological support. A bounce could mean a move up to the .8300 area while a breakdown could signal the start of a reversal.
See the setup

Significant Levels to Watch Out For


AUD/USD USD/CAD NZD/USD
Week Open (WO)
0.9268
1.0352
0.8140
Previous Week High (PWH)
0.9355
1.0430
0.8171
Previous Week Low (PWL)
0.9167
1.0306
0.7961
Top Weekly ATR (tWATR)
0.9391
1.0424
0.8255
Bottom Weekly ATR (bWATR)
0.9146
1.0281
0.8026
Other significant levels
0.9300, 0.9200
1.0300, 1.0450
0.8100, 0.8200

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.

Happy time

Other Popular Articles:

What is the STA strategy? Q2 2013 in Review Comdoll Trading Kit (Sept 2-5, 2013) AUD/JPY Trade