Best Setup of the Week :
As my Twitter friends and I have been discussing last week, .9850 has been a strong level for USD/CAD since at least last year. So when the pair tested the area, we were all looking at buying the pair. Too bad I didn’t take my own advice! I was too busy my two comdoll trade ideas to trade USD/CAD.
Around the middle of the week the pair not only tested the support thrice, but Stochastic also dipped to the oversold area at least once. If we had gone long at the area and then initially placed a 50-pip stop loss and added a position every 30 pips, we could’ve maximized the move until we close all positions at parity. That would’ve been good for a 9:1 reward-to-risk trade, or a total of 450 pips! Bummer.
BFF: Best Forex Friend
And now the good news! This week I’m proud to present my new BFF, Marshall Clark!
Upon chatting with Marshall, I found out that his trading style involves playing short term trends within longer-term trends and ranges. And like many of my previous BFFs, he only uses pure price action and rigid trade management.
Marshall shares that he can’t trade without his favorite music on, which he usually gets from internet radio sites like Grooveshark of SomaFM. His personal favorite stations include Secret Agent & Suburbs of Goa. Anybody else out there who like these stations too?
So what is Marshall’s advice to other newbies out there? He says that it helps to analyze the daily time frame to understand the overall direction of the pair. This will help in identifying major support and resistance levels as well as Fibonacci lines. He also advises to remove indicators that crowd your charts. He believes that core techniques are all you need, so newbie traders should instead focus on how to place and adjust stops as the trades move in favor of or against your trade idea.
That’s it for me today! If you have any questions or anything you want to say to me or one of my friends, don’t hesitate to give a shoutout on one of the links below! I’ll reply as soon as I can, I promise.
What Moved the Comdolls Last Week?
The comdoll gang was off to a weak start as risk aversion from the other week’s NFP release carried on, causing most major pairs to gap down over the weekend. It didn’t help that euro zone debt concerns started looming over the markets again as many speculated that Greece would need another bailout package by next year.
Towards the middle of the week, the commodity currencies started getting back on their feet as we saw strong economic data being released. For one, Australia printed higher than expected GDP figures for the past quarter and boasted of 1.2% economic growth. Canada also enjoyed better than expected data, as building permits and its Ivey PMI posted huge improvements.
However, this wasn’t enough to convince the BOC to hike rates during their recent rate decision. The central bank kept rates on hold since the policymakers remained concerned about the threats to the global economy, such as debt problems in the euro zone. They also emphasized that economic growth in Canada stalled in the second quarter but they expect the expansion to resume before the end of the year.
But it wasn’t all fine and dandy for the comdolls just yet. The Aussie was forced to return its recent gains when Australia showed bleak employment data, with its jobless rate climbing from 5.1% to 5.3%. Canada also printed poor employment data on Friday, showing a 5.5K decrease in net hiring. New Zealand didn’t release any economic data the entire week, leaving NZD/USD vulnerable to changes in risk sentiment.
The markets are really fickle lately, huh? Do you guys think we’ll see another topsy-turvy week for the comdolls in the next few days?
Let me know what you think by dropping me a line through any of these accounts:
Keep in touch!