Best Comdoll Setup of the Week
Just when you think that comdoll trading is winding down as the year draws to an end, this 5-to-1 setup shows up on AUD/USD!
On the 1-hour chart we can see that AUD/USD started the week by falling down to the 1.0050 handle, but it soon retraced to the 1.0150 area. And what do you know! The 61.8% Fib lined up nicely with the 1.0150 level! Not only that, a bearish divergence and an overbought Stochastic signal also supported a bearish trade.
If we had shorted at 1.0150 and used a 70/1/1 STA, we would’ve been stopped out at .9870 for a 5:1 reward-to-risk trade. How piptastic is that?
Unfortunately for me, my AUD/USD retracement trade didn’t work out as well as I had hoped since price didn’t go back up to my desired entry level. But hey, at least I live to trade another day, right?
How about you guys? Did any of you catch even a part of this big move? You can share your trades with us right here on one of these accounts!
Happy trading this week, folks!
What Moved the Comdolls Last Week?
All three commodity currencies were off to a weak start as they were weighed down by risk aversion at the start of the week. At that time, credit rating agency Moody’s warned that the entire EU could get a downgrade unless they get their finances under control. So much for the positive vibes that followed last week’s EU summit!
What made the selloff even worse for the Aussie was Australia‘s weaker than expected trade balance data, which revealed that exports weakened in November. On top of that, their Westpac consumer confidence report printed a surprise 8.3% decline. With that, AUD/USD sank below parity and dipped to a low of .9860.
New Zealand also had its share of weak data as its business manufacturing index missed expectations. Poor manufacturing data also came in from from Canada, which reported a 0.8% drop in manufacturing sales instead of staying flat in November.
Risk sentiment seemed to improve during the latter half of the week, but that was probably due to the lack of bad news from the euro zone during those days. Another factor that could’ve contributed to the rally on Friday was profit-taking by traders covering their short positions before the holidays.
I’ll keep you guessing which pair scored the best setup for the week as I return back to my baking. Gee, I hope it isn’t burning yet!
As always, comments and trade ideas are always welcome through any of these accounts:
Enjoy the rest of your weekend, friends!