Best Comdoll Setup of the Week
The pair formed a doji right smack at the 1.0800 major psychological handle and zoomed all the way up to the 1.1050 area. Stochastic was also in the oversold zone at that time. Price found resistance at that minor psychological level, and it would’ve been a good idea to lock in profits there. With a simple 50-pip stop and 1% risk, that would’ve been an easy 5% win.
If I was able to get in at 1.0800, that is!
Sadly, I missed this trade because I decided to look for setups in other comdoll pairs. Somehow, I still couldn’t get over my consecutive losses in trading AUD/USD. What’s worse is that I also lost on my USD/CAD trade just the same. Oh, woe is me!
Good thing I have a new BFF to cheer me up. Introducing, my latest BFF…
BFF: Best Forex Friend of the Week
Let’s all give a round of applause to my newest BFF, @millionayre! I mean, with a Twitter handle like that, I wouldn’t be surprised if he reaches his goal of making a million dollars by 2012 as he plans.
For those of you who have yet to get to know him, he’s a purely technical trader but he keeps a close eye on news reports that could rock the markets he’s currently trading. He dabbles in forex trading as well as other financial markets, which is probably why he needs to look at three screens while trading. For him, multiple time frame analysis is key to success.
His advice to noobs? Learn the ins and outs of the studies you use in trading. Don’t just use them without finding out how they work.
Helpful advice, don’t you think? If you plan to be a millionaire just like @millionayre, follow him on Twitter. And don’t forget to hit me up on Twitter and Facebook as well! You might just be my very next BFF!
See you around,
What moved the Comdolls last week?
The comdolls started the week with a chill pill as comdoll traders tried to figure out what’s next on the U.S. debt ceiling drama. Continued Greenback weakness pushed the Loonie higher on Monday, but the Aussie and the Kiwi also inched higher on a better-than-expected producer prices data from Australia.
Comdoll price action got a lot more interesting in the middle of the week when almost all of the comdolls gained heavily against the U.S. dollar. The Aussie and the Kiwi kept on making new record highs, while the Loonie also tipped a three-year high. And why not? Australia’s inflation rate came in stronger than markets had expected, and RBA Governor Glenn Stevens expressed his optimism on Australia‘s mining sector. Oh, and have I mentioned that gold and oil prices were soaring to the roofs?
The Kiwi bulls were also hard at work in the middle of the week even though New Zealand‘s trade surplus came in weak in June. That’s probably because the RBNZ was more hawkish than anticipated in their last interest rate decision. According to its statement, the New Zealand economy is starting to gain momentum after suffering two earthquakes in the last few months. In fact, rumors even started going around that the central bank might raise its raise in September!
The Loonie had the hardest time among the three major comdolls as Canada‘s economic connection the U.S. held the Loonie bulls back. Aside from that, a surprising increase in U.S. crude oil inventories weighed on oil prices, which turned bearish for the comdoll.
On Friday the gap between the Aussie-Kiwi team and the Loonie widened when a broad dollar-bearish sentiment and weak U.S. GDP drove the Kiwi sharply higher against the U.S. dollar. The Loonie suffered a setback when Canada’s GDP for May showed a 0.3% decline, the LOWEST IN TWO YEARS. Yikes! Meanwhile, the Aussie only managed to recoup its losses amidst the anti-dollar sentiment since talks of an interest rate cut in Australia already drove AUD/USD lower early in the day.
So did I miss anything? What do you think will be in store for the comdolls next week? Will we see a bit of retracement from last week’s sharp gains, or will we see the comdolls make fresh record highs on continued Greenback weakness? I hope you have your opinions ready because the comment boxes below are just waiting for you! But don’t worry, if you’re the shy type you can also give your opinions on my Twitter and Facebook accounts, or even on one of my Comdoll Corners!
Catch you guys tomorrow for my best comdoll setup of the week!