Comdoll Trading Kit (May 9-13, 2016): Forex Market Preview

I’m seeing potential retracements and reversals on the comdoll charts for this week! Better mark these inflection points and upcoming events, too.

Significant Forex Levels to Watch

AUD/USD

USD/CAD

NZD/USD

Week Open (WO) 0.7359 1.2952 0.6822
Previous Week High (PWH) 0.7720 1.2952 0.7054
Previous Week Low (PWL) 0.7338 1.2461 0.6808
Top Weekly ATR (tWATR) 0.7459 1.3102 0.6914
Bottom Weekly ATR (bWATR) 0.7259 1.2802 0.6730
Other significant levels 0.7800, 0.7600 1.2800, 1.2600 0.6900, 0.6800

In case you’re wondering what ATRs are all about and how I computed those figures, make sure you check out my entry explaining my trading strategies. Here are some of the comdoll forex setups I’m looking at this week:

AUD/USD: 4-hour

AUD/USD 4-hour Chart

AUD/USD 4-hour Chart

This pair suffered a selloff after the RBA decided to cut interest rates but it looks like it’s already finding support at an area of interest. This coincides with the 50% Fibonacci retracement level on the 4-hour time frame, adding to its strength as a floor. In addition, stochastic seems to be turning from the oversold area so a move back up to the previous highs might be seen.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

USD/CAD 4-hour Chart

Breakout alert! USD/CAD busted out of the descending channel resistance last week, indicating that the pair’s downtrend might already be over. However, stochastic is already showing overbought conditions and is starting to turn lower, hinting at a possible return in selling pressure. So far, falling oil prices and the forest fires in Alberta ain’t doing the Loonie any favors.

NZD/USD: 4-hour

 NZD/USD 4-hour Chart

NZD/USD 4-hour Chart

Is that a double top I’m seeing on NZD/USD’s 4-hour chart? Price has yet to break below the neckline around the .6800 handle before confirming the potential downtrend, but a bounce could take it back up to the .7050 area. Stochastic is heading out of the oversold area so bulls might take control from here.

If you’re planning on trading the news for the comdolls, better mark these events on your economic calendars as well:

Forex Comdoll Calendar

Forex Comdoll Calendar

Don’t forget to check out our risk disclosure when taking any of these setups. Got any comdoll trade ideas you’d like to share? Post ’em right here!

Cheers,

Happy time

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