How’s it going, everyone? I’m watching a couple of comdoll forex setups very closely right now, with one small position open on USD/CAD and my sell stop orders ready for NZD/JPY. Here’s what’s going on so far.
I’ve spotted a reversal pattern on NZD/JPY’s 4-hour time frame that lines up with my bearish bias on the Kiwi, but it looks like the pair ain’t ready for a breakdown just yet. While New Zealand’s fundamentals are looking very weak, yesterday’s RBNZ Financial Stability Report release turned frowns upside down when policymakers assured that the banking sector can withstand any headwinds from the dairy and housing industries.
Still, technicals seem to be favoring further downside for the Kiwi, as NZD/JPY formed lower highs in what appears to be a descending triangle pattern, with support at the 80.00 mark. I’m looking to short on a break of this level at 79.75 and I’ll be setting my stop 300 pips away, just past the previous highs.
It looks like the U.S. dollar is having trouble sustaining its sharp climb since medium-tier data turned out weaker than expected yesterday. I’m still keeping my bullish bias on the Greenback because of the increased odds of a Fed rate hike in December, but I’m willing to wait for a better entry price for my second long USD/CAD position.
I’ve already gone long at market (1.3300) on what appeared to be a bullish flag upside fakeout, and I’ve set another buy limit at the bottom of the channel around 1.3200. I placed my stop below the channel at the 1.3100 mark and I’ll be aiming for the channel resistance near the 1.3450 level for my initial profit target.
I’m open to the idea of trailing my stop and adding to my forex positions on both setups, as the Force is strong with these ones… Just waiting for a bit more confirmation that the trends will be sustained!
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