Is risk appetite back on? Commodity currencies have outpaced the dollar in the past few days and might be in for more gains this week.
|Week Open (WO)||0.7619||1.3214||0.7253|
|Previous Week High (PWH)||0.7636||1.3472||0.7320|
|Previous Week Low (PWL)||0.7521||1.3165||0.7170|
|Top Weekly ATR (tWATR)||0.7678||1.3303||0.7314|
|Bottom Weekly ATR (bWATR)||0.7560||1.3125||0.7192|
|Other significant levels||0.7700, 0.7800||1.3200, 1.3100||0.7300, 0.7200|
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:
Aussie bulls have been charging since breaking past that double bottom pattern from last week. Zooming out to the daily chart shows that the pair is inching close to the triangle resistance.Price still has a few pips north to go before hitting the ceiling around the .7700 major psychological level. Stochastic is already in the overbought zone already so buyers must be feeling tired at this point, but the oscillator has yet to turn lower before indicating a pickup in selling pressure.
If the resistance holds, another test of support could take place. However, an upside breakout would keep bulls in control and take AUD/USD higher by an additional thousand pips or the same height as the chart pattern.
USD/CAD is now sitting right at the bottom of the long-term ascending channel, still deciding whether to resume the uptrend or to go for a reversal.
I spotted a reversal candlestick on support, signaling that buyers could regain control and push the pair back up to the resistance around 1.3850-1.3900. Stochastic is already indicating oversold conditions, which indicates that sellers might want to book profits from here and let buyers take over.
Now here’s a pair that already made a breakout! Kiwi bulls have been strong enough to push past the channel resistance at the .7200 mark, signaling that a reversal is underway.
However, stochastic is already indicating overbought conditions and is starting to turn lower to reflect a return in bearish pressure. In that case, a pullback to the broke resistance could take place before more buyers join the game.
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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