What’s up, comdoll comrades? I don’t really have any new forex trade ideas for this week so I just thought of coming up with a quick update on the swing setups I’ve been watching.
First up is the comdoll trade setup that I’ve already taken: short AUD/NZD. As I’ve mentioned in my trade idea blog post, I jumped in at market when I saw a double top formation at the rising channel resistance after Australia printed a dismal jobs report. Price appears hesitant to head any lower for now but I’m confident that the resistance near the 1.1100 major psychological mark would hold.
Stochastic is moving down again anyway so there could be a chance for a stronger selloff later on. After all, concerns about China’s banking sector and bleak economic performance have been on the headlines again, and these could weigh on the Aussie. For now, I’ll be keeping this trade open with a stop at 1.1125 and a long-term target at the bottom of the channel at 1.0650.
As for this EUR/NZD setup that I’ve been watching closely for the past few weeks, well, it looks like price is ready to resume its drop. Big Pippin did say that the bearish divergence is playing out and that the trend line resistance might continue to hold!
I’m thinking that the euro zone GDP reports could be the catalyst for a strong downward move later on, as many are expecting to see weak growth figures for the second quarter of the year. Add to that fresh concerns on geopolitical tensions and Russia’s food imports sanctions on the euro zone, and we’ve got a recipe for a euro decline. I might enter at market if actual results fall short of expectations so I’ll be keeping close tabs on Pip Diddy’s London Session Recap today.
If I’m able to short, I’ll set a wide stop above the trend line or the 1.6000 major psychological handle and I’ll aim for the previous lows around the 1.5400 levels. I’m a bit concerned about doubling my long Kiwi positions since I’ve already got a short AUD/NZD trade open, but don’t you agree it’s about time that traders flocked back to higher interest rate offers?
As always, I’d appreciate your feedback on my trade ideas!
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