Will comdolls lose out to the dollar this week? Here’s what I’m looking at on AUD/USD, USD/CAD, and NZD/USD’s charts!
|Week Open (WO)||0.7564||1.3349||0.7342|
|Previous Week High (PWH)||0.7629||1.3348||0.7298|
|Previous Week Low (PWL)||0.7535||1.3192||0.7199|
|Top Weekly ATR (tWATR)||0.7622||1.3349||0.7342|
|Bottom Weekly ATR (bWATR)||0.7507||1.3174||0.7225|
|Other significant levels||0.7535, 0.7625||1.3200, 1.3335||0.7200, 0.7300|
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 is consolidating at the .7550 area which, if taken together with the pop in mid-June, looks a lot like a “shoulder” from a head-and-shoulder pattern on the 4-hour chart.
Stochastic is flirting with the overbought area, so there’s more pressure for the bears to retest the “neckline” near the .7535 levels.
There are no major reports due from Australia this week, so it would be tough to find a catalyst for a downside break of the head-and-shoulders pattern. I’m seeing a lot of top-tier U.S. reports, though, so best stay on your toes with this setup!
Is that another bearish flag I see? USD/CAD is consolidating in a 120-pip range after seeing a sharp drop from another bearish flag early in the month.Price is currently trading in the middle of the “flag” though stochastic is keeping a lid on bearish pressure with its oversold signal.
A break below the consolidation would confirm a bearish flag move and could drag the pair to the 1.3050 area of interest. But if the pair breaks higher, then we could be looking at a retest of the 1.3440 – 1.3550 previous support and resistance areas.
Bounce or break? NZD/USD seems to be heading lower after encountering resistance at the .7300 major psychological handle. No surprise as it’s been a range resistance since mid-June.
The range is approximately 100 pips tall, so there’s still room for a good reward-to-risk ratio if you’re planning on shorting the pair. Stochastic is almost at the oversold area, however, which could limit the bearish pressure on the pair.
See also: Q1 2017 Trading Performance Review
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