It’s all about the breakouts on AUD/USD and NZD/USD while USD/CAD is testing a super long-term area of interest. Will the comdolls keep rallying?
But first, here’s a quick look at the potential support and resistance levels:
|Week Open (WO)||0.7828||1.2646||0.7344|
|Previous Week High (PWH)||0.7829||1.2945||0.7368|
|Previous Week Low (PWL)||0.7586||1.2644||0.7201|
|Top Weekly ATR (tWATR)||0.7891||1.2741||0.7402|
|Bottom Weekly ATR (bWATR)||0.7765||1.2551||0.7286|
|Other significant levels||0.7700, 0.7800||1.2500, 1.2600||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:
It looks like Aussie bulls ain’t backing down! AUD/USD broke past the top of the ascending triangle resistance I highlighted in my watchlist blog post, so I’m considering taking a long position.
This chart formation is approximately 900 pips tall so the resulting uptrend could be of the same size. Stochastic is still pointing up, which means that there’s enough bullish momentum in play, but a pullback to the broken triangle resistance at .7750 could happen before it heads further north.
Another week, another set of strong gains for the Loonie! But can the Canadian currency keep going for more now that USD/CAD is testing a major area of interest visible on its weekly chart?The BOC decided to announce an interest rate hike of 0.25% in their policy statement last week and signal that further tightening is possible. This went against expectations of a dovish hike in which the central bank could emphasize that they won’t be increasing rates again in the near future.
Weak U.S. reports left the Greenback helpless versus the fundamentally-stronger Canadian dollar, which could set the stage for more USD/CAD losses. Stochastic is already dipping into oversold territory but has yet to pull up to indicate a return in buying pressure.
After hitting a roadblock at the long-term descending channel resistance, Kiwi buyers pushed harder and seem to have made a convincing breakout this time.
This upside break signals that NZD/USD is done with its climb and could be in for a huge reversal from here. Stochastic hasn’t quite reached the oversold region but is already heading north, drawing more Kiwi bulls to action.
However, if this move proves to be a fake out still, the pair could make another attempt at falling back to the channel support at .6750 or at least until the mid-channel area of interest around .6950.
See also: Q2 2017 Trading Performance Review
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