Best Comdoll Setup of the Week
Oohlala, how could I have missed this one? Have you seen the Fibs galore on AUD/USD last week? Well, here it is!
If I wasn’t too busy preparing for my cousin’s wedding, I could’ve seen this fantastic reversal on AUD/USD last Tuesday. Heck, not one, not two, but FOUR signals were supporting it! First and the most obvious one is the potential support at the major 1.0700 handle.
Looking at Stochastic I also see that it was at the oversold region at the time. Then, if I had drawn my Fibs just right, I could’ve seen that the pair was also encountering support at the 50% Fib. And last but not the least, a bullish divergence popped up at the time! *sigh*
If I had gone long at 1.0700 and placed a 90/1/1 stop-trail-add strategy, my trade would still be open with at least a 2:1 reward-to-risk trade. Or I could’ve also opened one position and added to it every time AUD/USD bounces off the 38.2% Fib and Stochastic was on the oversold region. That would’ve earned me at least 540 pips by now!
Whew! Good thing I’m not on this trade! If you haven’t seen it yet, I went long AUD/USD last week when I decided to just jump in the Aussie rally. You know what they say… the trend ends when it ends! I just hope the Aussie bulls still have momentum on their side!
How about you? Are you in any Aussie trade? Share your trading ideas! Who knows, maybe you might save some newbies out there from losing some pips! For starters, you can hit me up on the comment box below, or you can give me a shoutout on my Twitter and Facebook pages.
Can’t wait to meet you guys!
What moved the comdolls last week?
Elow govnahs! Pardon my poorly practiced British accent but I still can’t get over the royal wedding last week. Luckily, I was able to pry myself away from watching the wedding replays and commentaries to give you my very own replay of what moved the comdolls this week.
Just like the newly wed royal couple, the comdolls also seem to be headed for a happily ever after as commodity prices hit fresh highs again. Gold surged on Friday to reach a new high of $1564/ounce while silver soared by over 2% on the same day.
As I pointed out in my most recent long AUD/USD trade, investors seemed to have lost their appetite for U.S. dollars after the Fed announced that they’ll be sticking with their “exceptionally low” interest rates for an “extended period” of time. Who knows how long that’ll take? And do you know what goes hand in hand with record low borrowing rates? Why, the prospect of even higher commodity prices of course!
With that, not even weak economic figures were enough to stop the comdolls from rocking it out. Canada printed a disappointing -0.2% monthly GDP for February, worse than the predicted flat reading for the month, and yet USD/CAD returned to its former lows around .9450. Meanwhile, the RBNZ kept rates on hold at 2.50% but NZD/USD was still able to bounce back to the .8100 handle.
I can only imagine how much fun the comdolls will have this coming week as the economic schedule is filled with red flags, and even interest rate decisions to boot! If you can’t wait to trade those events, better read up on my buddy Forex Gump’s article on how to make pips off the rate statements. I’ll be keeping a close eye on the RBA’s decision for sure!
Make sure you watch out for my write-up on the best setup for the week too!