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Will comdolls keep climbing against the dollar this FOMC week? Here’s a couple of short-term pullback plays I’m looking at and a new big breakout.

But first, here’s a quick look at the potential support and resistance levels:

Significant Forex Levels to Watch
AUD/USD USD/CAD NZD/USD
Week Open (WO) 0.7908 1.2541 0.7448
Previous Week High (PWH) 0.7988 1.2702 0.7459
Previous Week Low (PWL) 0.7784 1.2522 0.7260
Top Weekly ATR (tWATR) 0.7975 1.2635 0.7519
Bottom Weekly ATR (bWATR) 0.7842 1.2447 0.7387
Other significant levels 0.7800, 0.7900 1.2500, 1.2600 0.7300, 0.7500

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: 4-hour

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

After the recent triangle upside breakout on AUD/USD’s daily time frame, I’m now hoping to catch a quick correction to join this pair’s uptrend.

A rising trend line can be drawn to connect the price lows since the start of June, and this could act as near-term support. Applying the Fib retracement tool on the latest swing low and high shows that the 61.8% level is close to this trend line.

Stochastic is making its way down to show that sellers are taking control of price action, but buyers could regain the upper hand once the oscillator reaches oversold territory. The 61.8% Fib also coincides with a former resistance level that might now hold as a floor.

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

There seems to be no stopping the Loonie’s rally! With price breaking another key support zone, I’m zooming in to the 1-hour chart to spot opportunities to short.

I’m seeing a descending channel that’s been holding since mid-July and price is currently bouncing off support. Stochastic is nearing oversold conditions so buyers might return soon, taking USD/CAD back up to the channel resistance just below the 1.2600 handle.

If the top of the channel continues to keep gains in check, price could be due for yet another test of support close to the 1.2500 mark. The FOMC decision is coming up, though, and this could mean more volatility than usual for this one!

NZD/USD: Daily

NZD/USD Daily Forex Chart
NZD/USD Daily Forex Chart

It turns out last week’s upside channel breakout was just a prequel for another one! NZD/USD just busted through the ascending triangle resistance visible on the daily chart to confirm that more gains are in the cards.

There may be some buying pressure left as stochastic is still pointing up, but the oscillator is dipping into the overbought zone to signal that Kiwi bulls might need to rest. If so, a retest of the broken resistance around the .7350 minor psychological mark could take place before the rally gains traction.

Cheers,

Happy

See also: Q2 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.