Best Comdoll Setup of the Week
As we can see on the chart, AUD/USD bounced between the 1.0350 and 1.0150 handles like they were solid walls. Not only that, we can also see that there was a divergence and a Stochastic signal EACH TIME that the pair touched those important levels! Boo.
The way I see it, we could’ve traded four valid setups during the week. I even numbered them on the chart for ya! The first one would’ve been good for a 5:1 reward-to-risk trade if we shorted at 1.0350 and used a 45/1/1 stop-trail-add strategy (STA). The second setup, the one that showed up on Tuesday, would’ve given us a 9:1 risk ratio using a 30/1/1 STA at the 1.0150 handle (which also happens to be the bottom WATR).
But it doesn’t end there! Around the middle of the week, the pair touched the 1.0350 level again, where we could’ve snagged a decent 2:1 risk ratio using a 60/1/1 STA. Lastly, going long at the 1.0150 area on Thursday would’ve yielded a nice 6.67:1 reward-to-risk trade if we had used a 30/0/0 STA, or a 30-pip stop without adding to our position.
Unfortunately, I was too caught up with trying to find a trade in the USD/CAD intraweek range. Little did I know that AUD/USD was offering more attractive setups! Hopefully next week we will be able to make money off of these setups.
So did any of you catch even a part of the price action? I hope some of you did! Anyway, if any of you guys have any questions or you’d like to share your AUD/USD trades last week, feel free to hit me up on one of my pages below!
Let’s make pips this week!
What Moved the Comdolls Last Week?
Blame it on the adrenaline rush but I’m feeling extra perky today! The comdolls, on the other hand, didn’t have such an exciting time last week. Although the Aussie and Loonie managed to end the week higher against the safe-haven Greenback, the comdolls were stuck in consolidation for the most part.
This was probably because traders had to take a break from those strong risk rallies we saw the other week. At that time, optimism about the “progress” in the euro zone debt talks encouraged market participants to go for the higher-yielders. But as the hype died down and disappointing updates from the euro zone started filling the airwaves, traders seemed unsure which direction to take.
As Forex Gump pointed out in his article about jumping in the risk rallies, traders better think twice because there were several dark clouds threatening to rain on the risk parade. One of the threats he mentioned was the possible change in tone of European leaders, which was exactly what we saw last week. Last I heard, the European summit scheduled for the weekend got delayed to Wednesday as officials couldn’t reach an agreement over several matters.
On top of that, some commodity-dependent economies also unveiled a bunch of negative reports during the week. Canada started the week with a couple of economic figures in the red as its foreign securities purchases and new motor vehicle sales data came in weaker than expected. Of course the comdolls’ mood also turned sour when China’s GDP missed the consensus of a 9.3% increase and landed a couple of notches below it.
Towards the end of the week, Australia reported that business confidence deteriorated in the third quarter as the NAB index fell to -4. It didn’t help that the previous quarter’s figure of 6 was revised down to 5.
Gee, I hope those downbeat news didn’t make you feel all gloomy today. The good news (well, at least for me) was that I didn’t lose any trades this week. Tee hee!
Stay tuned for the best comdoll setup that I spotted for last week. In the meantime, drop me a line or two through any of these pages: