Best Comdoll Setup of the Week
Aaaand the Best Setup of the Week award goes to… USD/CAD!
Talk about starting 2012 with a bang! The Loonie was actually off to a good start as USD/CAD let go of the 1.0200 handle early on. But, as risk aversion popped its head back in the markets, USD/CAD bounced right off the 1.0100 handle in a jiffy.
Had I scrolled back my charts a little further, I would’ve noticed that the 1.0100 major psychological handle was actually a strong support level in the past. Dang!
To top it off, a bullish divergence that formed just as USD/CAD reached that area. From there, the pair rocketed like a firework on New Year’s Eve all the way up to the previous week high, which I marked with a blue line.
Where was I when all this happened?! Tidying up after the new year’s festivities, most probably. Had I been able to take this trade though, I probably would’ve aimed for 1.0150 which was very near the previous week high. I could’ve used a 50/1/1 STA and ended up with a 6:1 reward-to-risk on the trade.
How about you guys? Did any of you catch even a part of this big move? You can share your trades with me right here on any of these accounts!
Happy trading this week, folks!
What Moved the Comdolls Last Week?
Now that we’ve closed the first trading week of 2012, I can’t think of anything better to do than to write a review of the news events that influenced comdoll trading last week. So, are you ready to take a stroll down memory lane?
The comdolls started the week with a chill pill as the forex market opened while almost all the major economies were still on a bank holiday. Since no major economic data was released, the Aussie, Kiwi, and Loonie ended the day almost unchanged against the dollar.
Things started heating up on Tuesday when a few positive reports from the euro zone and the U.S. boosted risk appetite. Unfortunately, the post-holiday good vibes didn’t last as traders went back to worrying over the euro zone debt crisis.
We saw a classic midweek reversal in our charts as the not-so-impressive bond auctions fueled concerns for the euro zone. Not only that, officials from Greece, Hungary and Spain also pitched in the bearish party by suggesting defaults, economic collapse, and more financial aids. Yipes!
By the end of the week not even the positive NFP report from the U.S., or the rise in gold and oil prices were able to give the comdolls a lift. Heck, why would they when Australia and China also released bearish comdoll reports throughout the week?
AUD/USD ended the week near its open price after peaking at 1.0387; USD/CAD had risen by 193 pips from its intraweek low, while NZD/USD only kept 42 pips of its gains after going down from its intraweek high of .7908.
If you think that you’ve missed most of the comdoll moves, don’t worry. It’s only the start of the year! I’m sure there will be plenty of comdoll trade opportunities in the next few weeks. In the meantime, why don’t you think about where the comdolls are headed next?
Will the positive employment figures in the U.S. boost risk appetite next week, or will events in the euro zone continue to take their toll on high-yielding currencies? Don’t forget to drop me a line on one of the pages below!
Enjoy the rest of your weekend, folks!