This week’s featured trade is a good example of why taking your position out ahead of major news events is not always a bad thing.
In his short GBP/CAD trade @elgitano5720 was looking at the pair’s broken rising trend line support on the 4-hour chart. However, thanks to slow markets and major reports scheduled over the next trading sessions he has decided to close his position with a 1:1 win.
Not bad for a comdoll cross trade, don’t you think? Congrats, buddy!
Potential Trade Setups
AUD/USD: Reverse H&S Breakout
AUD/USD struggled at the 1.0200 area for a while, but it looks like it’s already breaking a possible reverse head and shoulders pattern on the 4-hour chart. If the School of Pipsology is right and the length of breakout is equal to the distance between the head and the neckline, then we might see a 100-pip move at a breakout. See the setup
USD/CAD: Support at 1.0100?
When it comes to USD/CAD I have learned to trust psychological levels. This time the pair is about to test 1.0100, which was a previous resistance level. Not only that, but there’s also a bullish divergence and an almost oversold Stochastic signal on the 4-hour chart! Think it’s gonna go up soon? See the setup
NZD/USD: Rising channel Intact
Looks like NZD/USD’s rising channel is still intact! If you’re one of the Kiwi bulls then you might be happy to know that .8700, which is near a previous high and the top of the channel, is still about 150 pips away. Place your stops wisely though. Make sure that you have enough room for a good reward-to-risk ratio. See the setup
Comdoll Event Highlights for April 29 to May 3, 2013
Brace yourselves, folks! There are plenty of red flags on this week’s schedule, the biggest of which are the FOMC interest rate decision and the U.S. NFP release later on in the week.
As for the comdoll economies, perhaps the main events are Canada’s GDP release tomorrow and Australia’s quarterly PPI report due on Friday. Stronger than expected data could lift risk sentiment and prop up the commodity currencies against the U.S. dollar while weak figures could result in a selloff.
Well, that’s it for my initial thoughts this week! But If you’re like me and you’re still unsure where the comdolls will go, maybe a look at the potential inflection points on AUD/USD, USD/CAD, and NZD/USD will help us out.
Significant Levels to Watch Out For
|Week Open (WO)|
|Previous Week High (PWH)|
|Previous Week Low (PWL)|
|Top Weekly ATR (tWATR)|
|Bottom Weekly ATR (bWATR)|
|Other significant levels|
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.
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