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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.

Significant Forex Levels to Watch
AUD/USD USD/CAD NZD/USD
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:

AUD/USD: Daily

AUD/USD 4-hour Forex Chart
AUD/USD Daily Forex Chart

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: Daily

USD/CAD Daily Forex Chart
USD/CAD Daily Forex Chart

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.

NZD/USD: 4-hour

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

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!

Cheers,

Happy

See also: Q1 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.