How’s it going, guys? Are you ready to see which comdoll pair showed the most profitable trade last week? I’ll give you a clue – it sported a 5:1 reward-to-risk setup that would’ve given us a total of 300 pips!
Best Comdoll Setup of the Week
After gapping higher at the start of the week, AUD/USD went back to the .9900 handle and stayed there for a while. And why not? The major psychological level is not only sitting on a rising trendline, it’s also right on top of a 50% Fib support area. Not only that, a combination of higher lows on the price action and lower lows on Stochastic formed a bullish divergence, which also supported a bullish trade at the level.
If we had gone long at .9900 and used a 100/1/1 STA, we would’ve gotten stopped out with five positions open. This would’ve given us a total of 300 pips for a 5:1 reward-to-risk trade. I don’t know about you, but a 5:1 risk trade is definitely a bargain in my book!
How about you? Did you spot any profitable comdoll setup last week? Don’t hesitate to share ‘em! Oh, and have I mentioned that I’m looking for a new comdoll-related hobby lately? I’ve been thinking about sharing something else that’s comdoll-related, but I can’t be sure yet. Any request? You know where to reach me!
Hunting for comdoll pips,
What Moved the Comdolls Last Week?
The comdoll gang was off to a strong start as the Aussie, Kiwi, and Loonie all gapped higher against the Greenback over the weekend. This risk rally was mostly likely a result of the optimism surrounding record Black Friday sales the other week as well as the rumors that the IMF was planning to lend 600 billion EUR to Italy.
Later on, as more EU officials and institutions showed increased willingness to help out the cash-strapped nations in their region, the comdolls found even more reason to climb. But this was nothing compared to the comdolls’ rally when six central banks announced that they are joining forces to provide extra liquidity to the euro zone!
While Forex Gump thinks that this joint easing effort probably wouldn’t end the debt crisis in the euro zone, the announcement was enough to turn traders’ frowns upside down. Risk-taking continued for the rest of the week as AUD/USD, NZD/USD, and USD/CAD moved farther away from closing their weekend gaps.
Price action was a bit tighter for the last couple of days of the week as traders awaited the release of the NFP report, which came in close to consensus. The big news though was the considerable drop in the U.S. unemployment rate from 9.0% to 8.6% in November.
Could the upbeat U.S. labor figures spur another round of risk-taking next week? And would those weekend gaps ever close? Lemme know what you think! I’ll be right here on these pages:
Enjoy the rest of your weekend!