I’m seeing a number of top-tier market catalysts for the comdolls this week so it’s time to mark these inflection points and keep tabs on these chart setups.
Significant Forex Levels to Watch
|Week Open (WO)||0.7424||1.3494||0.7131|
|Previous Week High (PWH)||0.7476||1.3548||0.7146|
|Previous Week Low (PWL)||0.7372||1.3428||0.7035|
|Top Weekly ATR (tWATR)||0.7484||1.3581||0.7192|
|Bottom Weekly ATR (bWATR)||0.7365||1.3407||0.7070|
|Other significant levels||0.7500, 0.7400||1.3400, 1.3300||0.7100, 0.7000|
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:
This pair has been trending lower for some time but last Friday’s NFP dismal NFP results led to a sharp pop higher.
Price is now testing the descending channel resistance on its 1-hour time frame and this lines up with the 61.8% retracement level, along with a former support zone. Stochastic is already indicating overbought conditions so Aussie bears could be ready to take the upper hand.
It looks like this one’s still stuck in that area of interest I was lookin’ at last week! Price bounced off the 50% Fib level, though, suggesting that buyers may be regaining control. If so, USD/CAD could make its way back up to the swing high close to the 1.3800 handle.
However, stochastic is also heading south from the overbought zone so bulls might be losing momentum. If so, a larger correction to the 61.8% Fib could take place.
Bounce or break? The Kiwi is testing the top of its descending triangle against the Greenback and may push for more gains if USD weakness carries on.Keep in mind that the Kiwi has been one of the stronger-performing currencies lately, buoyed mostly by good fundamentals and upbeat RBNZ rhetoric.
This chart formation is approximately 500 pips tall so the rally could go on by the same amount if the pair makes an upside break. On the other hand, if resistance holds, a move back to the triangle bottom close to the .6900 major psychological mark could be seen.
Got any comdoll setups you’d like to share with me? Don’t forget to check out our risk disclosure!
See also: Q1 2017 Trading Performance Review
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