I’ve got a mix of short-term trends and longer-term inflection points on this week’s set of setups on AUD/USD, USD/CAD, and NZD/USD. Which one should I take?
But first, here’s a quick look at the potential support and resistance levels:
|Week Open (WO)||0.7603||1.2877||0.7278|
|Previous Week High (PWH)||0.7695||1.3015||0.7349|
|Previous Week Low (PWL)||0.7570||1.2860||0.7242|
|Top Weekly ATR (tWATR)||0.7661||1.2968||0.7340|
|Bottom Weekly ATR (bWATR)||0.7545||1.2787||0.7216|
|Other significant levels||0.7700, 0.7600||1.2800, 1.3000||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 seem to be taking a break from their climb, especially since the RBA wasn’t all that jolly in their latest policy statement. Price is currently resting at the bottom of the rising channel around the .7600 handle.
If this area continues to keep losses in check, AUD/USD could climb back to the channel resistance or test the longer-term ceiling around the .7725 level. Stochastic is pulling up from the oversold area to signal a pickup in bullish momentum after all.
The Loonie seems unstoppable in its rally against the U.S. dollar so I thought I’d zoom in to the 1-hour chart of USD/CAD to spot shallow retracement opportunities.Stochastic is indicating oversold conditions, which means that Loonie buyers might want to take it easy from here and book some profits ahead of the BOC decision this week.
Using the Fib tool on the latest swing high and low reveals that the 50%-61.8% retracement levels span a former support zone around the 1.2925-1.2950 area. If the BOC confirms its hawkish shift, USD/CAD could resume its drop below the latest lows at 1.2860.
It looks like Kiwi bulls are starting to run out of steam as the descending channel resistance on its daily time frame is proving to be a very tough barrier. I recently hopped out of a short position on this pair, but I may have a chance to reenter if bearish momentum picks up.
At the same time, stochastic is heading down from the overbought zone to show that sellers are regaining the upper hand from here. If so, NZD/USD could head back down to support around the .6700 mark or at least until the mid-channel area of interest at .7000.
But if dollar bears and Kiwi bulls continue to stay in control, price could make a convincing break past the channel resistance and the .7300 major psychological mark, setting off a steeper climb for this pair.
See also: Q2 2017 Trading Performance Review
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