And the “Best Setup for the Week” award goes to…
Aside from .8100 being a major psychological level, I also noticed that it lined up with the longer-term rising trend line. How could I have missed that?!
Stochastic was oversold when NZD/USD hit the trend line, adding another confirmation to go long. With a 100-pip stop and 0.5% risk, this could’ve easily been a 2% gain on my account. Even better, I could’ve added to my position every 100 pips and upped my reward-to-risk ratio to 10:1.
KIWIngardium Leviosa, it is!
I really should start moving on from Harry Potter and put more focus on the charts this week. Oh, and I will keep adding to my growing BFF (best forex friend) list, too. So make sure you participate, participate, PARTICIPATE in my Happy Comdoll Corners and don’t hesitate to hit me up on Twitter and Facebook.
What Moved the Comdolls Last Week?
Hey friends! Did you all have a great weekend? I don’t know about you, but I don’t think there’s anything like a comdoll replay to cap a fun and exciting weekend! Here’s what moved the comdolls last week.
As we all saw, the comdolls started the week with a heavy hangover from the previous week as risk aversion continued to rule sentiment in markets. This was disappointing especially for the Aussie and the Loonie bulls since Australia and Canada’s housing figures printed better than expected.
The pressure on the comdolls continued on Tuesday when Australia clocked in a disappointing NAB business confidence report on accounts of weak business and consumer confidence in the Land Down Under. Meanwhile, Canada’s trade narrowed down to 0.8 billion CAD in May as expected while oil prices also rose in the charts. Too bad it wasn’t any help for the Loonie!
The comdolls experienced a not-so-classic case of midweek reversal on Wednesday when Fed Chairman Ben Bernanke rocked the markets with his speech in front of the Congress. In his speech, he admitted that economic growth was weaker than the Fed had estimated and that the Fed is open to giving more economic stimulus.
The prospect of the U.S. needing more stimulus sent investors away from the dollar and into the high-yielding comdolls. Heck, NZD/USD even made new record highs! Of course, a positive Chinese GDP released earlier that day probably made the decision easier for them anyway.
For the rest of the week the Loonie and the Kiwi danced to the tune of a bit of risk appetite as Bernanke clarified his “stimulus” comment, pushing Kiwi to fresh record highs against the Greenback. The Aussie had to fight its own battles though, since Australia was still printing weak economic reports.
Apparently, it didn’t suit the Aussie bulls that Australia was facing low business and consumer confidence figures. Apparently, Prime Minister Julia Gillard revealed her plan to tax big carbon polluters like steel and aluminum manufacturers 23 AUD per metric ton starting in mid 2012, which put a damper on Australia’s investors. What’s more, inflationary pressures in the country have also eased a bit, which convinced markets that the RBA will hold on to its interest rates for a while, if they’re not already thinking of a rate cut. With bearish news like those, could blame the Aussie bears from attacking?
Looks like the comdolls are in for big movements next week! Aside from risk appetite remaining sensitive to events in the euro zone, we must also take note of rising investor tensions in Australia, the Kiwi’s record strength against the dollar, and even China’s strong economic growth. Do you think these will be the big comdoll movers next week?
I’ll look forward to hearing what you think! If you want to share your two cents (and I hope you do), you can always give me a holler on the box below, on my Twitter and Facebook accounts, or even on one of my Comdoll Corners.