It’s make-or-break time for AUD/USD, NZD/USD, and USD/CAD this week as the pairs are testing significant correction levels for their ongoing trends. Take a look!
| AUD/USD | USD/CAD | NZD/USD | |
|---|---|---|---|
| Week Open (WO) | 0.7652 | 1.2685 | 0.6925 |
| Previous Week High (PWH) | 0.7701 | 1.2820 | 0.6980 |
| Previous Week Low (PWL) | 0.7627 | 1.2666 | 0.6874 |
| Top Weekly ATR (tWATR) | 0.7714 | 1.2777 | 0.6996 |
| Bottom Weekly ATR (bWATR) | 0.7590 | 1.2592 | 0.6855 |
| Other significant levels | 0.7700, 0.755 | 1.2915 1.2630 | 0.7025 0.6925 |
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
Aussie bears are putting up a pretty good fight as this pair is having trouble climbing past the mid-channel area of interest on its 4-hour time frame.
If it continues to keep gains in check, AUD/USD could slide back to the channel support around the .7550 minor psychological mark. Stochastic is heading south anyway, which means that sellers are on top of their game.
Then again, the oscillator is approaching oversold levels, so buyers could regain the upper hand soon. If they’re up for it, they could still push for a higher pullback to the channel resistance or even a break higher.
USD/CAD: 4-hour
This pair has retreated right to the trend line and Fib levels we were watching last week. Is it time for a bounce yet?
Stochastic is already turning up from the oversold region to signal a return in bullish pressure while price tests the 50% Fib level around the 1.2700 major psychological support.
A bounce could take it back up to the swing high and beyond while a move lower could still find support from the 61.8% Fib or 1.2600 mark, which might be the line in the sand for this uptrend.
NZD/USD: 1-hour
NZD/USD is also at a decision point on its 1-hour time frame as it tests the bottom of its ascending channel.
A bounce could take it up to the channel resistance around .7025 or at least until the mid-channel area of interest at .6975.Kiwi bulls could allow the uptrend to resume as stochastic indicates oversold conditions or exhaustion among sellers. But if bearish momentum stays on, a downside break from the .6925 support could mark the start of a reversal.
Cheers,
See also: Q3 2017 Trading Performance Review
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