Weekly Forex Trade Setups Commentary | Aug 30 – Sep 4

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WTI – Did WTI Just Bottom? (Monthly Chart)
Selling off 9 of the last 12 months, WTI Oil has hit the 2008 spike lows around 37/38. Within 12 hours after touching this level, the commodity formed a double bottom and has since spiked over $7-8 higher. The question on many traders minds now are, “Did WTI just bottom?”

There is certainly cause for believing that as this is one impressive bounce. At the very minimum, we are seeing a short squeeze in play here and likely some major profit taking from any shorts in play from last week.

The commodity does face some important resistance ST around 46.50 which is a key role reversal level (blue line on chart). If it can clear this, then we should see a quick attack on the 50 handle, and from here there is potential for a larger pullback up to $60.

MT and LT we are bearish, but ST we’ll be bullish while above this major support level at $37/38.


AUDUSD – Long Tailed Pin Bar, Attempting to Base, 3P Like Structure (4hr chart)
Suffering a massive spike lower from Monday’s flash crash, the AUDUSD formed a long tailed pin bar rejection just above the big figure at 7000. Since then the Aussie has been attempting to base forming two higher lows while attacking the key resistance + role reversal level at 7215.

For now, we have to remain bearish on a MT basis while below this level on a daily closing print. If this level holds, then the bears should re-attack the spike lows. But if the series of higher lows builds, then the bulls will want to take out this level, which should put pressure on 7400.


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