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It’s all about trends and corrections this week, so I’m planning on going with the flow on these setups on AUD/USD, USD/CAD, and NZD/USD. Take a look!

Significant Forex Levels to Watch
Week Open (WO) 0.7649 1.2760 0.6911
Previous Week High (PWH) 0.7730 1.2915 0.6951
Previous Week Low (PWL) 0.7639 1.2715 0.6839
Top Weekly ATR (tWATR) 0.7714 1.2856 0.6984
Bottom Weekly ATR (bWATR) 0.7584 1.2665 0.6839
Other significant levels 0.7800, 0.7600 1.2740, 1.2630 0.7060, 0.6820

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: 4-hour

AUD/USD 1-hour Forex Chart
AUD/USD 4-hour Forex Chart

A downtrend is brewing for AUD/USD as the pair is starting to form a descending channel on its 4-hour time frame. Price is currently testing support, though, while stochastic is dipping into oversold territory.

A return in bullish pressure could lead to a bounce back to the channel resistance, which lines up with a former support area around the .7800 handle. Aussie bears might be waiting to short at this level, which might keep gains in check and allow the selloff to resume.

USD/CAD: 4-hour

USD/CAD 1-hour Forex ChartUSD/CAD 1-hour Forex Chart
USD/CAD 4-hour Forex Chart

Dollar strength has also been in play for this pair, which has been moving above an ascending trend line connecting the lows since last month. Price looks ready for a correction to this support zone, which lines up with the 61.8% Fib but the nearest retracement level already seems to be holding as a floor.

At the same time, stochastic is starting to pull up from the oversold region to indicate that buyers are regaining the upper hand. In that case, price could make its way back up to the swing high from here.

NZD/USD: 4-hour

NZD/USD 1-hour Forex Chart
NZD/USD 4-hour Forex Chart

Aha! I’m finally seeing a pullback opportunity after the Kiwi’s sharp dive the other week. Recall that this pair breached the long-term rising trend line on its daily chart to signal that a downtrend is in order.

Zooming in to the 4-hour chart shows that price is trading below a descending trend line and could be due for a correction to the area of interest near the 61.8% Fib. However, stochastic is already heading south so price might follow suit as sellers are eager to hop back in.

In that case, another test or break of the swing low could be underway, triggering yet another steep drop for NZD/USD.



See also: Q3 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.