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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?

Significant Forex Levels to Watch
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 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

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

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

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 4-hour Forex Chart
NZD/USD 4-hour Forex Chart

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,

Happy

See also: Q3 2017 Trading Performance Review

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.