Can risk aversion extend its stay in the markets and weigh on commodity currencies again? Here’s a look at the potential setups and inflection points this week.
|Week Open (WO)||0.7893||1.2673||0.7308|
|Previous Week High (PWH)||0.7949||1.2753||0.7417|
|Previous Week Low (PWL)||0.7838||1.2630||0.7247|
|Top Weekly ATR (tWATR)||0.7959||1.2763||0.7371|
|Bottom Weekly ATR (bWATR)||0.7827||1.2583||0.7245|
|Other significant levels||0.7800, 0.7900||1.2500, 1.2600||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:
The Aussie recently broke below its descending triangle support and is now moving inside a descending channel pattern. Price is testing the resistance and could be due for a move back to support since stochastic is already indicating overbought conditions.
However, if Aussie bulls try to get back in the game and push for an upside break, a reversal from the downtrend could be underway. RBA minutes and Australian jobs data are up for release this week, possibly dictating where the Aussie is headed next.
It looks like the Loonie ain’t done with its pullback, fellas! The pair has a few more pips to go before testing the descending trend line resistance that lines up with an area of interest visible on the 4-hour chart.Stochastic is already turning south, though, so selling pressure could pick up and lead to a move back to the swing low at 1.2415. But if the correction continues, price could still test the 50% Fib closer to the 1.2900 major psychological level.
U.S. retail sales data and the FOMC minutes could push the dollar around this week while the Loonie will have to take its cue from oil prices, market sentiment, and Canadian CPI data.
This pair is also moving in a descending channel on its short-term time frame and is testing resistance at the moment. A bounce could take it back down to support around .7225 while a break past .7325 could signal a potential reversal.
A bit of bearish divergence can be seen since stochastic made higher highs while price had lower highs. New Zealand just printed stronger quarterly retail sales data over the weekend and is set to print its PPI figures next.
See also: Q2 2017 Trading Performance Review
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