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Welcome to Q2, comdoll buddies! I’m looking at a couple of short-term plays on NZD/USD and AUD/USD while watching the big channel breakdown on USD/CAD.

Significant Forex Levels to Watch
Week Open (WO) 0.7685 1.2972 0.7326
Previous Week High (PWH) 0.7712 1.3272 0.7349
Previous Week Low (PWL) 0.7562 1.2946 0.7252
Top Weekly ATR (tWATR) 0.7744 1.3065 0.7383
Bottom Weekly ATR (bWATR) 0.7627 1.2879 0.7269
Other significant levels 0.7700, 0.7625 1.2900, 1.3200 0.7300, 0.7400

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

Aussie bulls ain’t done with their charge as this pair has been moving above a short-term rising trend line visible on the 1-hour time frame.

Price has paused upon reaching the .7700 major psychological level, which means that a pullback opportunity could materialize from here. Applying the Fibs on the latest swing high and low reveals that the 38.2% to 50% levels line up with the trend line support and a former resistance zone.

Stochastic is already pulling up so buyers must be excited to resume the climb, but a correction to the .7600 area or 61.8% Fib might also be a possibility.

USD/CAD: Daily

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

Yep, that was a bearish flag pattern on last week’s USD/CAD chart alright! It signaled that a continuation was due, and the pair followed through with a convincing break of the long-term channel support.

Stochastic is already dipping into the oversold region but hasn’t turned higher yet, which suggests that there may still be some selling pressure left. But if Loonie bulls need to take it easy, a correction to the broken channel support around the 1.3200 mark could be in the cards.

I’ve taken a small long position on this pair a few days back, but I’m now thinking of taking the opposite trade with this technical break. After all, this channel has been holding for more than a year already, so the breakdown could be indicative of a new long-term trend forming.

NZD/USD: 1-hour

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

Consolidation is the name of the game for NZD/USD for now, with a rising wedge pattern forming on its short-term chart.

The pair is currently testing the wedge resistance while stochastic is moving up, which signals that an upside break could be possible. The chart formation is around 150 pips tall so the resulting rally could be of the same size.

If Kiwi bears regain the upper hand, a move back to the wedge support near the .7300 mark could be seen. Similarly, a break below this area could send the pair down by around 150 pips.



See also: Q1 2017 Trading Performance Review

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