It’s all about the channels and Fibs on 1-hour charts of AUD/USD, USD/CAD, and NZD/USD these days. Who’s thinking of going with the flow, too?
|Week Open (WO)||0.8057||1.2160||0.7262|
|Previous Week High (PWH)||0.8125||1.2427||0.7338|
|Previous Week Low (PWL)||0.7941||1.2059||0.7147|
|Top Weekly ATR (tWATR)||0.8123||1.2261||0.7327|
|Bottom Weekly ATR (bWATR)||0.7992||1.2059||0.7196|
|Other significant levels||0.8035, 0.8000||1.2280, 1.2060||0.7300, 0.7210|
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:
It looks like Aussie bulls are still keepin’ on as AUD/USD is cruising safely inside its ascending channel on the 1-hour time frame and might be due for a bounce off support.
This potential floor lines up with the 61.8% Fibonacci retracement level and is also slightly above the .8000 major psychological mark. If this area keeps losses in check, price could bounce back up to the swing high at .8125 or until the channel resistance closer to .8150.
Here’s another textbook short-term pullback play materializing for USD/CAD. After breaking below a key support zone during the BOC announcement last week, price is starting to form a descending channel pattern.Support near the 1.2050 mark appears to be holding for now, so the pair might still retreat to the channel resistance around the 61.8% Fib before heading further south. A larger correction could last until the 1.2150 area, which lines up with a previous area of interest.
However, stochastic is already turning down from the overbought zone to signal that sellers are eager to push for new lows. A bit of bearish divergence can also be seen as the oscillator formed higher highs while price had lower highs.
Last but certainly not least is this potential break-and-retest opportunity on NZD/USD. The pair recently surged past the descending channel resistance on the 1-hour chart, indicating that a reversal is in order.
Applying the Fib tool on the latest swing low and high reveals that the broken channel resistance lines up with the 61.8% retracement level and is also close to the .7200 major psychological support. Stochastic is still on the move down to show that the correction is still taking place and that Kiwi bulls could return once the oscillator pulls higher.
See also: Q2 2017 Trading Performance Review
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