Comdoll Weekly Replay (Feb 28 – Mar 4, 2011)

Thanks to my deep-tissue massage earlier, my tired nerves are now rejuvenated and ready to jump back to reviewing past price movements so I could stay on top of my next trades. Let’s take a quick review of the events that shook the commodity currencies these past few days, shall we?

The past week has been an eventful one for the comdolls, mostly because their economic schedule was filled to the brim with top-tier releases. For one, the RBA and the BOC made their monetary policy decisions during the week. If that didn’t get you at the edge of your seats, I don’t know what will!

happy bear

Although the RBA and BOC both kept rates on hold at 4.75% and 1.00% respectively, their accompanying statements were very promising. RBA Governor Glenn Stevens noted that there were a lot of bright spots in the Australian economy, and this was supported by their stronger-than-expected GDP growth for the last quarter of 2010. Meanwhile, BOC Governor Mark Carney also acknowledged the improvements in the Canadian economy, but he also cautioned about the Loonie’s strength and its potential impact to Canada‘s exports.

The RBNZ didn’t have an interest rate decision scheduled for this week but downbeat remarks from Prime Minister John Key regarding their monetary policy stance caused the Kiwi’s knees to buckle. According to Key, the recent quakes in New Zealand left so much damage that they could use some help from lower interest rates! A rate cut?! No wonder many Kiwi bulls ran for cover!

These mixed reports left me doubting whether rising commodity prices would be enough to prop up all three comdolls next week. The Aussie and Loonie don’t seem to have much to worry about, given that the outlook for their economies is strong and that gold and oil prices just keep climbing. Crude oil seems to be safely above the major psychological $100/barrel mark while gold just reached a record high this week. If that keeps going, I might have to think twice about buying a brand spankin’ new iPad 2 and just put my money on gold and crude oil instead!

Now that I mentioned about my moolah, I have to tell you guys that I was still shaking off my past two losses which put a teeny dent on my account, so this week I just decided to take a simple day trade in hopes of making a solid comeback.

AUD/USD day trade

And what a comeback it was! IMHO, the AUD/USD day trade that I took was one of the best trade setups for the week since it brought me roughly 75 pips even while I was watching the replay of the Oscars. Imagine my thrill when price hit my first PT just as they were awarding Christian Bale the best supporting actor award!

Oh, and speaking of awards, it looks like NZD/USD is still the winner of my best trade setup for the week! I mean, my AUD/USD setup was fine, but this week’s NZD/USD setup provided more pip opportunities and popped up more signals for confirmation.

NZD/USD Fib plays

Remember the potential Fib retracement that I pointed out in my last comdoll replay? Well it panned out last week! Price reversed just as it hit the bottom of the channel, but it didn’t reach the top as it consolidated at the 50% Fib near the .7500 minor resistance handle. It then dropped to the .7400 level and even retraced back to the 50% Fib again before slumping to the .7350 area.

Pretty neat, huh? If I had jumped in the trade at the.7500 handle early in the week as a swing trade and added to my position at the 50% Fib retracement, I probably would have boosted my savings for an iPad 2!

USD/CAD also had that descending channel going just like NZD/USD, and a bounce from the bottom of the channel could’ve also made for a nice trade. Price movement was just a little choppier than usual and the fundies didn’t line up so well.

USD/CAD channel

What I’m keeping a close eye on is the possible retracement to .9850, which is at the top of the channel. I promised myself I’d be more patient, wait for retracements, and make sure the techs and fundies are aligned before taking a trade. This one has an excellent profit potential, but you’ll just have to wait and see if I’ll take that setup next week!

In the meantime, I’ll keep you posted through my MeetPips.com and Twitter accounts for any updates on the markets and random stuff about me as well. I’ve been getting great feedback through these sites and I’m looking forward to hearing more from you! Holla back!