They say the trend is your friend until the bend at the end! Should I go with the flow on these short-term plays on AUD/USD, USD/CAD, and NZD/USD?
| AUD/USD | USD/CAD | NZD/USD | |
|---|---|---|---|
| Week Open (WO) | 0.7564 | 1.2769 | 0.6815 |
| Previous Week High (PWH) | 0.7666 | 1.2824 | 0.6938 |
| Previous Week Low (PWL) | 0.7536 | 1.2678 | 0.6780 |
| Top Weekly ATR (tWATR) | 0.7626 | 1.2859 | 0.6886 |
| Bottom Weekly ATR (bWATR) | 0.7503 | 1.2679 | 0.6745 |
| Other significant levels | 0.7500, 0.7575 | 1.2915 1.2630 | 0.6800 0.6600 |
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.
Here are some of the comdoll forex setups I’m looking at this week:
AUD/USD: 1-hour
AUD/USD is already approaching the bottom of the longer-term channel highlighted last week but is also trading inside a smaller descending channel on its 1-hour time frame.
This could mean a quick pullback opportunity and a chance to hop in the selloff at slightly better levels. Price is bouncing off the channel support and could be due for test of the nearby area of interest around .7575 before heading further south.
USD/CAD: 4-hour
Support is holding so far, fellas! USD/CAD is still hovering the ascending trend line and Fibs for the nth week but seems to be showing a bit more bullish momentum this time.
If dollar bulls continue to prop the pair up, price could eventually make its way up to the swing high just below the 1.2950 minor psychological resistance. Stochastic is on middle ground, though, barely offering directional clues at the moment.
On the other hand, a return in bearish pressure could still lead to a downside break of support and the start of another downtrend for this pair.
NZD/USD: 1-hour
NZD/USD broke below the 1-hour ascending channel support from last week and is now carrying on with its slide on the 4-hour time frame.
Price is starting to test the mid-channel area of interest around the .6800 handle and a break below this level could take it down to the channel support closer to .6600.
However, stochastic is indicating oversold conditions and looks ready to turn higher, possibly drawing Kiwi bulls back in. Better keep close tabs on New Zealand’s upcoming retail sales release to gauge where this pair might go!
Cheers,
See also: Q3 2017 Trading Performance Review
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