Partner Center Find a Broker

I’m seeing strengthening trends on AUD/USD, USD/CAD, and NZD/USD these days, and the upcoming top-tier catalysts could make or break these moves.

Significant Forex Levels to Watch
Week Open (WO) 0.7949 1.2426 0.7149
Previous Week High (PWH) 0.7996 1.2664 0.7299
Previous Week Low (PWL) 0.7870 1.2342 0.7131
Top Weekly ATR (tWATR) 0.8014 1.2522 0.7214
Bottom Weekly ATR (bWATR) 0.7885 1.2330 0.7085
Other significant levels 0.8000, 0.7850 1.2600, 1.2500 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

Feeling in the mood for a short-term countertrend play? AUD/USD has been moving inside an ascending channel and is on its way to testing the resistance around the .8000 major psychological mark.

There are several major catalysts lined up for the Aussie this week, namely the RBA statement, quarterly GDP, retail sales, and trade balance. Stronger than expected reports could allow the pair to bust through the ceiling while downbeat readings could lead to a drop back to support around .7850 or even a break lower.

USD/CAD: Daily

USD/CAD Weekly Forex Chart
USD/CAD Weekly Forex Chart

Loonie bulls are still leading the charge thanks to stronger than expected GDP data from Canada, which was enough to refuel BOC interest rate hike expectations. The central bank is actually scheduled to announce their monetary policy decision this week and hawkish remarks are expected.

USD/CAD is already dipping below the 1.2600 key support level, which could pave the way for a drop to the next floor all the way down to the 1.1000 major psychological mark. The latest U.S. jobs report turned out to be a disappointment, dampening hopes for another Fed rate hike and likely keeping a lid on the dollar’s gains.

However, stochastic is already indicating oversold conditions on this long-term time frame, which suggests that sellers might want to take it easy from here and let buyers take over.

NZD/USD: 1-hour

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

Nope, it ain’t deja vu, fellas! NZD/USD is setting up for another channel pullback play after last week’s downtrend correction opportunity worked out perfectly.

Applying the Fib tool on the latest swing high and low on the 1-hour chart shows that the 61.8% level lines up with the top of the channel once more, this time around the .7250 minor psychological mark. Stochastic is pulling up from the oversold region to show that buyers may be in control for now.



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.