Major currencies seem to be moving in sync these days! Take a look at what’s driving price action in the forex market this week.
Midweek Market Prep
The safe-haven Greenback is on the losing end so far this week as its major counterparts are all in the green. Leading the pack is the Kiwi, which is enjoying a 1.13% lead so far with the Aussie close behind with its 0.79% gain.
For now, risk sentiment has been positive in the markets as most economic reports have been churning out stronger than expected results. Australia just released stronger than expected retail sales and current account figures while U.K. services PMI surprisingly came in strong.
A lot could still change in the coming days though as several central banks are lined up to make their interest rate decisions. The BOC is set to make its rate statement today while the BOJ, BOE, and ECB are scheduled tomorrow. Don’t forget that the U.S. NFP is set to spark fireworks across the charts on Friday, as well!
Potential Trade Setups
AUD/USD: Doji at 1.0200!
One of the reasons why I pulled the trigger on my AUD/USD trade is that there’s a doji at the 1.0200 handle, which has supported the pair since 2010. But will it go up all the way to the 1.0400 or even the 1.0600 area? I’m definitely crossing my fingers on this one! See the setup
USD/CAD: Rising Channel Support
Here’s one for the dollar bulls! USD/CAD is sitting at a potential rising channel support on the 1-hour chart. Not only that, but Stochastic is also in the oversold region! The 1.0300 level is a good target if you think that the Loonie is in for more losses this week. See the setup
NZD/USD: Resistance at .8320?
The Kiwi bulls are about to challenge the .8320 handle, which has served as a strong support level for NZD/USD last month. Last week the level has turned into resistance area. Will we see a repeat this week? You could target yesterday’s low if you’re thinking of shorting this comdoll. See the setup
Comdoll Event Highlights for March 4-8, 2013
Brace yourselves for an exciting week for the commodity currencies! The Aussie seems set to start the week with a bang as the RBA will announce its monetary policy decision tomorrow. After that, Australia will print its GDP report for Q4 2012 on Wednesday.
The Loonie is in for a wild ride too as the BOC will make its interest rate announcement on Wednesday. Then, on Thursday, Canada will release its jobs figures for the month of February.
Don’t forget that the U.S. non-farm payrolls is on tap for Friday as well! Other reports that could rock the comdolls this week include the Chinese trade balance and CPI data.
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
| AUD/USD | USD/CAD | NZD/USD | |
|---|---|---|---|
| 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.
Chips, dips, and lots and lots of pips!
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