Once again, this week’s featured trade is from one of my forum friends, elisab. In his reply under the Happy Corner for Loonie pairs, he points out the upside breakout on USD/CAD’s inverse head and shoulders pattern.
Do you think this means that USD/CAD is in for more rallies? If so, how high do you think it can go?
Potential Trade Setups
AUD/USD: Finished Retesting?
If you can’t get enough of the comdoll selloff, then this setup is for you! If the Aussie continues to gain ground against the dollar, then we might see AUD/USD reach the 38.2% and 50% Fib levels near a previous support area. Stochastic is just above the oversold area so I think we can afford to wait before we short this setup. See the setup
USD/CAD: Channel Resistance
As you can see, USD/CAD closed at a shooting star in yesterday’s trading. In fact, it’s also near a rising channel resistance and the 1.0500 major handle. Lastly, Stochastic is on the overbought territory. A tight stop could probably work if you think that we’re about to see gains for the Loonie. See the setup
NZD/USD: Range Trade
NZD/USD is on an 80-pip range on the 1-hour chart and it looks like it’s not breaking out anytime soon. Make sure that you read up on trading breakouts if you’re planning on a breakout trade! Alternatively, you can place tight stop losses and just trade the Kiwi’s short-term range. See the setup
Comdoll Event Highlights for June 24 to 28, 2013
Uh oh, it looks like there aren’t a lot of major events on this week’s comdoll schedule! That just means one thing… Anything can happen!
My hunch is that dollar bulls will still come charging this week, thanks to last week’s FOMC statement regarding the Fed’s plan to reduce bond purchases towards the end of the year. Of course that hinges on the outcome of this week’s U.S. data so y’all better keep tabs on those releases which could affect overall market sentiment.
If you still haven’t formed a bias on the comdolls this week, then you should at least mark the potentially significant chart levels on AUD/USD, USD/CAD, and NZD/USD. We never know just how many other traders are watching the same inflection points!
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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