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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.

Significant Forex Levels to Watch
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:

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

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.

USD/CAD: Daily

USD/CAD Daily Forex Chart
USD/CAD Daily Forex Chart

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-hour

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

Now 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

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.