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It’s FOMC week, ladies and gents! Don’t forget to keep tabs on these potential inflection points and setups on the comdolls.

Significant Forex Levels to Watch
AUD/USD USD/CAD NZD/USD
Week Open (WO) 0.7592 1.3460 0.7208
Previous Week High (PWH) 0.7567 1.3542 0.7223
Previous Week Low (PWL) 0.7422 1.3423 0.7113
Top Weekly ATR (tWATR) 0.7592 1.3544 0.7268
Bottom Weekly ATR (bWATR) 0.7473 1.3377 0.7149
Other significant levels 0.7500, 0.7400 1.3400, 1.3300 0.7300, 0.7200

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 Forex Chart
AUD/USD 4-hour Forex Chart

Aussie bulls seem to have gotten more momentum after the previous week’s pop higher, allowing the pair to break past the double bottom neckline on its 4-hour time frame.

This chart pattern is approximately 200 pips tall so the resulting rally could be of the same size. However, stochastic is pointing down to suggest that sellers are trying to stay on top of the game. A quick pullback to the broken neckline around .7475-.7500 could happen before stronger buying pressure kicks in.

USD/CAD: 4-hour

USD/CAD Daily Forex Chart
USD/CAD Daily Forex Chart

Consolidation has been the name of the game for USD/CAD for the past few days, keeping price hovering around the area of interest at 1.3500 for yet another week.

Zooming out to the daily time frame reveals that a bullish divergence has formed, with price forming higher lows since the start of the year and stochastic making lower lows.

A return in bullish momentum could take USD/CAD back up to the channel resistance at 1.3800, but sellers winning over could lead to a deeper correction to support near 1.3300.

NZD/USD: 4-hour

NZD/USD 4-hour Forex Chart
NZD/USD 4-hour Forex Chart

Kiwi bulls have been charging nearly nonstop recently, but it looks like they’re encountering a roadblock at the .7200 handle. After all, this lines up with the descending channel resistance on the 4-hour chart.

Keep in mind that the Kiwi has been one of the stronger-performing currencies lately, buoyed mostly by good fundamentals and upbeat RBNZ rhetoric.

Stochastic is already heading south from the overbought zone to show a pickup in selling pressure that might take NZD/USD down to support at the .6800 mark or until the mid-channel area of interest at .6950-.7000.

Got any comdoll setups you’d like to share with me? Don’t forget to check out our risk disclosure!

Cheers,

Happy

See also: Q1 2017 Trading Performance Review

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.