Another light week for the commodity currencies data-wise, but we could get big moves from AUD/USD, USD/CAD, and NZD/USD with catalysts for the dollar and market sentiment.
|Week Open (WO)||0.7926||1.2476||0.7242|
|Previous Week High (PWH)||0.7954||1.2608||0.7337|
|Previous Week Low (PWL)||0.7866||1.2466||0.7191|
|Top Weekly ATR (tWATR)||0.7991||1.2564||0.7305|
|Bottom Weekly ATR (bWATR)||0.7862||1.2388||0.7180|
|Other significant levels||0.7800, 0.7950||1.2500, 1.2670||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:
Bounce or break? AUD/USD is sitting right at the top of its short-term range visible on the 1-hour time frame, testing the resistance at the .7950 minor psychological level.
Stochastic seems to be edging lower, so there’s a chance that sellers could keep the pair cruising sideways. If the ceiling holds, price could head back to support around .7870. On the other hand, an upside break of resistance could spur a rally of around 80 pips or the same height as the rectangle pattern.
After resuming its selloff last week, USD/CAD is now back to testing the long-term floor at the 1.2500 major psychological mark. A bounce off this level could lead to the formation of a double bottom reversal pattern while a breakdown could signal that more losses are in the cards. Stochastic is heading down so price could follow suit, but the oscillator is already dipping into oversold territory to signal exhaustion among bears.
NZD/USD: 1-hourNow here’s a textbook trend play on NZD/USD’s 1-hour forex chart. Price is moving inside a descending channel and is bouncing off support, probably going on a correction back to the resistance.
The top of the channel lines up with the 61.8% Fibonacci retracement level and is also close to the .7300 major psychological mark. However, stochastic is already turning lower to suggest that the mid-channel area of interest around the 38.2% Fib or .7250 minor psychological mark might already be enough to keep gains in check.
See also: Q2 2017 Trading Performance Review
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