Best setup for the week
Up to now, I still can’t believe I missed this pip-tastic setup on AUD/USD last week. Without further adieu, here goes…
AUD/USD tumbled from the 1.1050 area to the 1.0400 thanks to a combination of U.S. dollar buying and weak fundamentals from Australia. I could’ve shorted at 1.1050, right when that bearish divergence formed, and held on until 1.0400. Even better, I could’ve added every 100 pips and made a 21-to-1 reward to risk ratio on this pair, assuming my initial stop was also 100 pips. With my usual 0.5% risk, I would’ve made more than 10% on this setup!
Blame it on my “aversion” to trading AUD/USD, knowing full well how many trades I’ve lost by playing this pair. Then again, I probably should’ve just let go of my emotions and hunted for setups without any biases against any comdoll pairs. Easier said than done, huh?
Once again, I’m feeling pretty disappointed with myself for missing such a great trade setup. Thank goodness for butterscotch pecan ice cream and my latest BFF for helping me keep my happy vibes!
BFF: Best Forex Friend of the Week
To be honest, when I first “met” snook in the forums, I always imagined that I was talking to someone that looked like Snooki from Jersey Shore. Yes, with the poof and all!
Imagine my surprise when I learned that my latest BFF snook is actually a guy! Little did I know that I should’ve been thinking of “The Situation” instead of Snooki!
Some of you might know him as Chris Salls on my Playing with Comdolls Facebook page. He works from home as a day and swing trader since he recently discovered forex trading as a means to earn extra income.
For him, watching charts is a part of his daily breakfast routine. His advice for noobs? Put as much time as possible into learning and success will come.
So if you find his advice as inspiring as I did, make sure to give him a holler. Better yet, join our lively discussion in the Comdolls section of the forums. You’ll meet my other BFFs there, too!
See you around,
What moved the Comdolls last week?
The Comdolls started the week on the wrong side of market sentiment when the agreement on the U.S. debt ceiling failed to calm market fears of a slowdown in global economic recovery. Heck, not even a positive inflation report was able to save the Aussie! Okay, maybe it’s also because Australia’s manufacturing index printed badly on that day.
Risk aversion and more gloomy news from Australia continued to drag the comdolls in the middle of the week when the RBA not only kept its interest rates steady at 4.75%, but also expressed its concerns that global growth might be slowing down. What’s more, Australia’s retail sales and trade balance reports disappointed expectations. Good thing there were no economic reports from Canada and New Zealand to worsen the comdoll selloff!
On Thursday the Bank of Japan took center stage and rocked the markets when it actively TRIED to strengthen the dollar against the yen with a currency intervention. Of course, it was a no-win situation for the comdoll bulls who all suffered from the substantial gains of the Greenback.
It was only on Friday when the comdolls had a fighting chance against the Greenback as most dollar pairs traded on ranges before the NFP report from the U.S. was released. Though the comdolls still touched three-week lows against the dollar, NZD/USD managed to post its first positive day for the week with a 75-pip gain at .8437. Meanwhile, USD/CAD also ended the day 14 pips lower at .9781 despite mixed economic reports from Canada.
Enjoy the rest of your weekend!