Best Setup of the Week
I know, I know, NZD/USD has been getting a lot of buzz in the comdolls section of the forums yet I still missed this 200-pip winner. Darn it!
But the fact that we’ve all had our eyes on it counts, doesn’t it? Most of my new-found friends in the forums have been thinking of shorting NZD/USD, but it was a matter of picking a good entry point and figuring out the rest of the trade details. Thanks to our lively discussion, some folks were able to catch pips from this drop. In fact, I caught almost a hundred pips… on demo, that is.
As we talked about on my Happy Corner for NZD pairs, there were plenty of chances to jump in this downtrend. But nothing beats being able to catch the entire move, of course!
From the chart I posted, you can see that the pair retraced to the 50% Fibonacci level which was right at the .8200 handle. The pair broke below the .8100 mark and I could’ve added another position there. The .8000 major psychological level looks like strong support so I probably would’ve exited the trade once the price reached that area.
Had I risked 0.5% on each of those positions, I would’ve made 1.5% on the entire trade!
Oh well, at least my bearish bias for this pair was correct. I’m taking this one step at a time, and I’m hoping you could help me out. Pick your favorite comdoll and join the fun in my Happy Comdoll Corners right here:
Who knows, we could have such an awesome time that you’d end up being my newest BFF!
Speaking of BFFs, I have decided that @Soltan6403 is my Best Forex Friend of the Week. Snaps to ya!
@Soltan6403 describes his trading style as systematic and logical. He makes it a point to risk 2% on each trade and wait for confirmation from candlesticks before entering a trade. Boy, I wish I could be THAT disciplined!
He says that he can’t trade without his iPhone, which he uses as his mobile trading platform. He also relies on Twitter and email alerts for the latest happenings in the forex arena.
Although he still considers himself a newbie, he advises new traders out there to keep it real. By this he means that one should set realistic expectations and have a good system that one should follow at all times. He also has a trading blog, which he calls Shinka Revolution, wherein he shares his market thoughts.
You see, anybody can be my BFF. It doesn’t matter if you’re a newbie, an expert trader, whether you’re broke or evergreen… Just don’t be shy to share your trade ideas or market thoughts in the forums or through my Twitter and Facebook accounts. Let’s all learn from each other, okay?
See ya around!
What Moved The Comdolls Last Week?
The Comdolls were off to a pretty good start early in the week as a positive output report from China and a better-than-expected retail sales report from the U.S. boosted risk appetite in markets. The Loonie was also boosted by a bounce in oil prices, while the Aussie shrugged off a weak housing report. Meanwhile, the Kiwi’s gains were limited by another round of aftershocks in Christchurch. Not bad, eh?
Risk aversion was the name of the game around the middle of the week as civilian protests in Greece highlighted the lack of progress with the country’s sovereign debt crisis. The Greenback ended up gaining across the board, dragging oil prices by as much as 4%.
As if the flight to safety wasn’t enough to spook the comdoll bulls, worse-than-expected economic figures from Canada and Australia also factored in the mix. Canada’s manufacturing sales fell by 1.3% in April from a 1.9% gain in March, while Australia’s Westpac consumer confidence index also printed a 2.6% decline in June, the lowest in two years. Yipes! It’s no wonder the comdolls were knocked down faster than you can say “SELL!”
Good thing the comdolls had a little room to breathe by the end of the week as they ignored continued weakness in commodities and actually edged higher against the Greenback. What’s more, improvement in risk appetite highlighted good news in commodity-producing countries like a possible interest rate hike in Australia.
So do you think we’ll see the comdolls rise next week, or will we see more of the “flight to safety” theme? Give us a shoutout on the boxes below or on my @Happy_pip Twitter and Playing with Comdolls Facebook page!
Oh, and while you’re at it, do you have any tips on which comdoll pair had the best setup last week? I already have a guess, but I’d rather hear what you think. I’ll be posting my best setup in a few hours, together with my BFF: Best Forex Friend this week.
Happy Fathers’ Day to all wonderful dads and single moms out there! You guys are the best!