Is AUD/USD’s downtrend over or is it about to resume? Forum member pipballer thinks that it’s about time the Aussie went back to its selloff mode!
In his entry to this week’s Trade of the Week contest, he shared a retracement play on AUD/USD’s 4-hour time frame. He predicts the pair’s rally would reverse around the .9050 area, before AUD/USD heads back south to .8850.
I have a similar trade on this pair and my short order just got triggered! Do you think I should keep it open over the weekend?
Potential Trade Setups
AUD/USD: Reversal in the works?
AUD/USD looks like it’s on the verge of a reversal after price bounced from the .8850 area where a hammer popped up. I’m also seeing a possible bullish divergence waiting to play out on the daily chart. A few more confirmation candlesticks wouldn’t hurt though, before I seriously consider an Aussie long trade. See the setup
USD/CAD: Bullish pennant
Is the Loonie in for more losses? USD/CAD is consolidating on what looks like a bullish pennant on the 4-hour chart. If the pair breaks above the pennant that I’m watching, then I might look at a possible long order entry above the previous highs near 1.0400 with a stop loss just below the pattern. What do you think? See the setup
NZD/USD: Sitting on a significant area
NZD/USD is lollygagging near the 50% Fib on the 4-hour chart, which isn’t surprising considering that the area had served as a support and resistance level in the past. Stochastic is still in the overbought region though, so I’ll probably wait for a stronger bearish divergence signal before I jump in. See the setup
Comdoll Event Highlights for August 5 to 9, 2013
It looks like we’re in for a crazy week, especially for the Aussie! Not only are there a bunch of top-tier economic releases from Australia, such as the retail sales and jobs data, but the RBA is also set to make its interest rate decision later on.
As for the Kiwi, it’s currently being weighed down by news that a bulk of Fonterra dairy products are about to be recalled due to contamination issues, but the upcoming New Zealand jobs report could give it a chance to recover.
Meanwhile, Loonie trading could pick up pace during the latter half of the week, as Canada will release its trade balance, Ivey PMI, and jobs figures.
In case you still can’t decide which among these reports to play, you can always mark your AUD/USD, USD/CAD, and NZD/USD charts and see if you can spot potential trade setups:
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.
Other Popular Articles:
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.