Best Comdoll Setup of the Week:
Remember when NZD/USD was tipping fresh record highs two weeks ago? Well, it wasn’t done just yet! The pair lounged in a 30-pip range early in the week before it knocked down previous highs and actually ended the week with even fresher record highs!
If we had been paying attention last week, we would’ve jumped on the Kiwi wave on Monday when the pair touched the bottom of a 30-pip range at .8420. Aside from Stochastic being at the oversold region at the time, the level was also a significant support area during the previous week.
If we had gone long at .8420, put a 60-pip trailing stop, added a position every 60 pips and closed all positions at .8650 by the end of the week, we would’ve gotten a total of 596 pips! That’s a 9.93:1 reward-to-risk ratio! Hold on, I think I’m getting dizzy…
Whew! We must not let opportunities like this pass us by! Hopefully we’ll be more attentive this week. Did any of you at least catch some pips with the big move? I hope so!
Meanwhile, on to the good news – I have a new BFF!
BFF: Best Forex Friend of the Week
Guys, this week let’s all give our Happy snaps to @cafe_trader!
@cafe_trader, also known as Dean FX Paul, is one of my good friends who gave advices on my AUD/USD trade last week. Well, I got to know him better using my @Happy_pip Twitter!
In our conversation, he shared that he prefers swing and long-term trades based on political, economic, and fundamental trends. He even said that he can hold his swing trades for weeks or even months on occasions!
Of course, this doesn’t mean that he “sets and forgets” his trades. He also revealed that he can’t trade without his iPhone or other mobile devices since he mostly trades on the go. What’s more, he uses his gadgets to monitor fx news and his trades daily.
His advice to fellow newbies? Take your time, trade for a year or so on a practice account, and read good fx sources daily in order to slowly get a feel for how currencies and global markets & the big picture works.
I don’t know about you, but I say that’s a really sensible advice! If you wanna follow his footsteps and become my next BFF, all you have to do is kick away your shyness and tell us what you think about the comdolls or any other forex-related topics! Don’t worry, we don’t bite. If you want to take it one step at a time though, you can start by giving us a shoutout on any of my blogs, my Twitter, Facebook, or even one of my Comdoll Corners!
Looking forward to hearing from ya!
What Moved the Comdolls Last Week
If there’s one group of currencies that know how to make a strong comeback, that’s the comdoll gang! Unlike their performance the other week, the comdolls staged strong rallies during the past few days as risk appetite returned in the markets. Much of the risk-taking was spurred by news that the U.S. and the euro zone, two economies currently facing debt concerns, were starting to find solutions for these problems.
Among the three commodity currencies, the Kiwi was able to rack up the most gains as it reached a new record high against the Greenback. NZD/USD climbed steadily the entire week, breached the .8500 major psychological handle, and chalked up a high of .8666. Of course the strong GDP reading from New Zealand, which I pointed out in last week’s comdoll replay, was probably one of the reasons that pushed the Kiwi higher. On top of that, the better than expected CPI reading of 1.0% printed early during the week added another boost.
But don’t count the other comdolls out yet! The Loonie also broke its yearly high against the Greenback, with USD/CAD bottoming out around .9450. Hawkish words from its central bank, who suggested that they are thinking of hiking interest rates soon, brought back some Loonie lovin’. However, Loonie bulls stopped short in their tracks when the Canadian CPI figures came in weaker than expected at the end of the week.
Last but not least, we have the Aussie. AUD/USD proved to be unstoppable last week, despite the downbeat remarks from the RBA. According to the minutes of their latest monetary policy meeting, Governor Stevens and his men aren’t too happy with Australia’s economic performance lately and may be forced to keep rates on hold for the rest of the year. It didn’t help that the new carbon tax dampened business confidence in the Land Down Under, preventing the central bank from making any tightening moves all the more. Yet, amidst all that, AUD/USD was able to break out of that range I spotted and settled around the 1.0850 area.
There you have it, folks! I’m pretty sure you can tell which pair will have the best setup for the week. But I won’t give it all away now, would I? If you wanna venture a guess, you should definitely hit me up on Twitter, Facebook, my Comdoll Corners, or through the comment box below. Share your thoughts on how that setup could’ve been played best and what reward-to-risk ratio we could’ve gotten. Come on, don’t be shy!
See ya around!