Anyone planning to trade the comdolls during the FOMC statement? Here are some setups I spotted on AUD/USD, USD/CAD, NZD/USD. What do you think?
Potential Trade Setups
AUD/USD: Rally Overdone?
AUD/USD has formed a bearish divergence on its 4-hour time frame, as price made higher highs while stochastic made lower highs. Does this mean that the current rally is already overdone? The .9300 to .9350 area seems to be a stubborn resistance level and a selloff might take the pair back to the .9100 area. See the setup
USD/CAD: Divergence Alert!
That 1.0300 handle is still holdin’ like a boss! USD/CAD has been having trouble making any headway below that region, as it also coincides with a rising trend line on the daily time frame. Aside from that, a bullish divergence has formed and is hinting that a bounce might take place. See the setup
NZD/USD: Rising Trend Line
Will the Kiwi keep reaching for new highs? The steep rising trend line on its 1-hour chart is still holding up really well, as the pair appears ready to make a test of the .8200 major psychological support. A bounce could mean a move up to the .8300 area while a breakdown could signal the start of a reversal.
See the setup
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.
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