As promised, here’s my best setup for the week. It’s another retracement play with the Aussie!
AUD/USD slid down sharply at the start of the week but it was merely a retracement and not a reversal. This brief correction was most likely a result of profit-taking and, as Big Pippin pointed out in one of his chart art entries, the pair could find strong support at the 1.0400 handle… and it really did!
I should’ve listened to Big Pippin’s AUD/USD trade suggestion instead of nagging him about where he bought his new bling-bling! Aside from that, I really should review the “Retracement or Reversal?” lesson in the School of Pipsology so I wouldn’t get confused next time.
Anyway, the bounce from the 61.8% Fib and 1.0400 handle continued all the way up to the previous week high, which was in line with the week open price. Imagine if I took that long trade from 1.0400 and aimed for 1.0550, I would’ve made an easy 150 pips for the week!
What Moved the Comdolls this week? | 2011 – 04 – 16
Hey guys! I had a bit of trouble waking up today (blame it on the a-a-a-a-amazing beats at the club), but I just can’t miss doing my Comdoll weekly replays! Are you up for another quick review of what news events moved the Comdolls for the past couple of days?
Early last week we saw the comdolls take hits against the Greenback on a round of profit-taking from the previous week’s strong rally. Then, the Loonie further slipped on Tuesday when crude oil prices retreated and traders started pricing in a non-interest rate hike from the Bank of Canada.
Good thing the comdolls started shaping up in the middle of the week as hawkish comments from the BOC, as well as positive economic data from Australia and New Zealand began to pop up in markets. Australia’s Westpac consumer sentiment showed optimism with its 1.2% figure, up from a 2.4% decline in good vibes in March. A report from New Zealand also showed higher house prices in the country, which increases pressures for another interest rate hike.
On Thursday the Aussie and the Kiwi showed their true strength when they gained against the Greenback despite rumors of another round of tightening in China, weaker inflation figures from Australia, and lower business manufacturing numbers in New Zealand. Meanwhile, the Loonie continued to lose ground against the Greenback when Canada’s trade balance missed expectations with a flat report and its manufacturing sales numbers painted in the red.
Lastly, the currency bears decided to have an early weekend on Friday when the USD/CAD capped the day almost unchanged. Okay, maybe it’s also because oil prices gained traction again, but hey, there’s no harm in having an early weekend, right? Even the Aussie and Kiwi bulls were having a blast with AUD/USD flirting with record-highs and NZD/USD zooming to its three-year high. Hah! Let’s see if the bulls can keep their beats next week!
All right, that’s it for me this week! I gotta prepare my brunch first (scrambled eggs, pancetta, and fresh fruits), but I’ll be back if you have any questions for me. Don’t hesitate to hit me up on the comment box below or on my Happy_Pip Twitter account!