I’m seeing a couple of classic chart patterns and a short-term trend play on AUD/USD, NZD/USD, and USD/CAD for this week. Take a look!
|Week Open (WO)||0.7834||1.2489||0.7211|
|Previous Week High (PWH)||0.7974||1.2534||0.7332|
|Previous Week Low (PWL)||0.7799||1.2313||0.7166|
|Top Weekly ATR (tWATR)||0.7902||1.2587||0.7279|
|Bottom Weekly ATR (bWATR)||0.7767||1.2391||0.7143|
|Other significant levels||0.7850, 0.8100||1.2500, 1.2400||0.7200, 0.7550|
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:
This pair already started its descent a couple of weeks back and is currently signaling that it’s ready to continue its drop. Price formed a double top pattern on its 4-hour time frame and is testing the neckline at the .7850 minor psychological support.
A break below this floor could take price down by an additional 250 pips or roughly the same height as the chart formation. However, stochastic is pulling up from the overbought zone to indicate that Aussie bulls are trying to regain the upper hand and push AUD/USD back up to the tops near .8100.
I’ve got a longer-term bearish correction play on USD/CAD right now, but I’m also keeping close tabs on this short-term ascending channel on the 1-hour chart.Price is bouncing off the resistance just past the 1.2500 mark and could be due for a pullback to support from here while stochastic is heading south from the overbought region.
There are a couple of top-tier reports due from the U.S. and Canada later this week, though, so I’m inclined to think that a breakout might take place. A break below the channel support could signal that Loonie bulls are still on top of their game while and upside break could convince me to exit my short position early.
This pair already formed a head and shoulders reversal signal last week, but Kiwi bulls tried to keep up the fight by defending the neckline support at .7200.
Price is back to testing this neckline once more and a breakdown could send it down by more than 300 pips or the same height as the chart formation. Stochastic is on the move up to show that there is some bullish pressure left, but the oscillator is also closing in on the overbought region to suggest rally exhaustion.
See also: Q2 2017 Trading Performance Review
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