Commodity currencies still seem to be no match to the Greenback, so I’m staying on the lookout for a potential continuation of these ongoing trends on AUD/USD, USD/CAD, and NZD/USD. Don’t forget to mark these inflection points, too!
|Week Open (WO)||0.7771||1.2533||0.7063|
|Previous Week High (PWH)||0.7875||1.2600||0.7227|
|Previous Week Low (PWL)||0.7733||1.2449||0.7059|
|Top Weekly ATR (tWATR)||0.7838||1.2629||0.7132|
|Bottom Weekly ATR (bWATR)||0.7704||1.2438||0.6994|
|Other significant levels||0.7800, 0.7735||1.2500, 1.2600||0.7150, 0.6950|
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:
After confirming a double top reversal pattern and completing a tiny pullback to the broken neckline, AUD/USD appears to be setting its sights much lower. Another quick correction might be underway, though, and the 50% Fib at the .7800 handle could serve as a ceiling.
The reason I’ve got my sights on this area is that it lines up with a broken support level that might now hold as resistance. Stochastic is still edging higher anyway, so there may be some bullish pressure left to take price a bit higher. If any of the Fibs hold as resistance, AUD/USD could head back down to the swing low.
That tight ascending channel on last week’s Comdoll Trading Kit is still very much intact! Support near the 1.2450 minor psychological mark held and allowed the pair to make another test of resistance, and now another pullback opportunity is comin’ right up.
USD/CAD looks ready to test the channel floor around the 1.2500 major psychological mark this time, and this lines up with a former resistance level. Stochastic has a bit of room to head lower but is already dipping into oversold territory, which means that buyers could get back in the game and push the pair back to the top of the channel at 1.2600-1.2650.
This pair broke below the necklines of short-term and long-term head and shoulders patterns, indicating that Kiwi bears are in tip-top shape and ready to keep pushing price down.
Zooming out to the daily time frame shows that the next major support is located at the long-term rising trend line connecting the lows over the past couple of years. However, stochastic is already indicating oversold conditions so sellers might need to take it easy at some point.
See also: Q3 2017 Trading Performance Review
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