Best Setup of the Week:
And AUD/USD takes the cake again! For the second week in a row, this pair trumped its comdoll buddies and made the biggest moves across the charts.
AUD/USD was already itching to rally from the get-go as it sprang from its week open price on Monday. This move would’ve been difficult to catch unless you’ve been watching the charts like a hawk even before the trading week began!
Besides, another chance to catch the uptrend presented itself the next day when AUD/USD pulled back to the resistance turned support at top WATR, which lined up with the 50% Fib level. What, err? If you have absolutely no idea what “WATR” means and how to use it, you should definitely check out my post about my trading strategies first.
Anyway, a long entry at the .9900 major psychological level would’ve worked in this case since it was close to the 50% Fib and also the previous week high. I could’ve stayed in this trade the entire week and used a 100/1/1 STA. Locking in my profits at the end of the week, right around the 1.0300 handle, would’ve been an awesome 10:1 win!
With my usual 0.5% risk on each position, I could’ve made a 5% gain on this trade. Oh boy do I need a win like that so bad!
Still, I’m feeling pretty giddy this week since I’ve got a new BFF on my list! Introducing…
@ranausuf1 from Twitter!
Yousuf Rana or ranausuf1 for short is a day trader who usually checks the daily chart before zooming in to the 4-hour and 1-hour time frames for trade entries. But if he decides to trade the setups on the 1-hour or 4-hour charts, he takes a look at the shorter-term time frames such as the 15-minute or 5-minute charts for entries. It’s all about multiple time frame analysis!
He checks his Twitter feed most of the time since the one thing that he absolutely must have while trading is the live news updates from his fellow traders. Aside from that, he checks Forex Factory and Forex Gump‘s updates on market events.
His advice to newbies is to stop wasting time growing their account sizes. Instead, they should invest money on education and get to know the markets first. He pointed out that many people save up money to trade, but he thinks that it’d be better to spend on education and services that make you a better trader.
Wanna be my next BFF and be part of the in-crowd? Hit me up through any of these accounts:
Talk to ya soon!
What Moved the Comdolls Last Week?
Just when we thought that the comdoll bulls have had enough buying from the previous week, we saw the Aussie, Loonie, and the Kiwi rise sharply against the Greenback on Monday on a continuation of the risk rally brought about by positive sentiments on the euro zone debt crisis.
The trend barely changed in the middle of the week even when economic reports from the commodity-producing economies showed mixed results. AUD/USD shot up sharply above parity even BEFORE Australia released its positive employment reports, while the Loonie struggled a bit with its gains when its trade deficit surprisingly in August.
China’s weaker-than-expected trade balance report rained on the comdolls’ parade during the London session on Thursday, but the currency bulls promptly got back their mojos by the time the U.S. session started. Of course, it might have helped that gold, copper, and even corn prices were also gaining momentum at the time.
The comdolls continued to dance the risk-friendly beat by the end of the week when positive economic reports lined up with the persistent risk appetite in markets. Canada’s manufacturing sales registered a 1.4% growth in August, its fastest rate since October 2008. Meanwhile, China’s softer-than-expected inflation numbers gave AUD/USD and NZD/USD a boost since it suggested that the PBoC isn’t going to tighten its monetary policy anytime soon.
Alrght friends, that’s it for me today! Did I miss anything? Do you have any questions for me? Give me a holler at one of these pages!