Big moves, what to do next?

by | Aug 5, 2024 | Forex Analysis

Trading floor

Big moves, what to do next?

Hi all,

I have posted my analysis for the week ahead. We had a lot of movement this week, as expected. However, the NFP report had the most impact; it came worse than expected and nowhere near the forecast. Hence why we saw the $ tumble. The stock market went down (NASDAQ, SP500, etc), and Crypto and TNX were all down, too. This is because money is flowing out of risky assets and moving into safe havens due to recession fears.

$2.9 trillion (£2.27 trillion) was reportedly wiped off global stock markets, according to a financial expert. It was the worst day for stocks since March 16, 2020, during the COVID-19 pandemic fears.

Global recession fears explode as ‘£2.3trillion wiped off stock markets’ in single day

We got the big moves and a direction, so what to do next? Well, it’s simple: just follow the trend. I have marked up areas of support and resistance looking back in the past on most of my charts. I then went on from the Daily timeframe to 4HR to zoom in and get better entries, and follow the trend. The trend is your friend. Don’t try to counter-trend trade as it is more risky, and you don’t know where the price will stop if it is in an uptrend or downtrend.

I will not enter the market open but wait till NY opens on Monday and then decide what to do. We need to be sure if this is the start of this big move on the $ or if it will retrace back into the channel on the DXY.

DXY closing outside the channel on Friday on the weekly chart, If you look closely it has stopped near the 78.6% level. This is usually the last place we look for a bounce back, so I want to be sure before entering on Monday.

 

image 2024 08 03 191554465

 

 

 

 

 

 

 

 

 

 

The Forex Week Ahead+++++++++++++++++++++++

Next week looks very light in terms of news. We have bank holidays at the start, and then Australia announces its cash rate on Tuesday morning. So make sure not to trade AUD pairs until then. On Thursday, USD unemployment claims could have some volatility as a lot of attention is going to be paid to employment figures to see if things are slowing down. Lastly Friday CAD announce their employment figures.

++++++++++++++++++

 

MAJORS

Remember I am looking for “A” grade trades from weekly & daily charts that I can place the orders and then just walk away. A “B” grade is of interest, but not an A yet. I will watch on 4 hour timeframes to see how price reacts if it hits my zone after the news is released.

There is a danger that the $ will rebound, so keep your eye on the Index and only be in one trade versus the dollar at a time.

EUR/USD:  The long would have worked at 1.08 but NFP stopped us from taking it. I will look for a short near 1.0950 for multiple reasons.

USD/CHF: Short on 4HR at 0.8750

Do not take the Euro/$ & Chf at the same time. They are correlated so it’s the same “bet.”

GBP/USD: Messy now and between EMAs, leaving it alone.

AUD/USD: A grade short at 0.66. Intra day 0.65560 is interesting.

NZDUSD: A grade short at 0.60440. Also watch 0.59760.

USD/CAD: I would look to long near 1.37400. Intra day watch 1.38 as it has bounced off there several times recently.

USDYEN: Needs a pullback, watch the video.

CROSSES

Some are A grades, where I will place forward orders; some pairs have “areas of interest.” I have a lot of similar crosses, so be very careful with the correlation.

EURGBP: Not the best, but 0.85570 looks interesting for a short time for multiple reasons. Also watch 0.84700 for a long on 4HR

EURAUD: Long at 1.64250

AUDCAD: Similar to AUDUSD, short at 0.9080, which is interesting, but wait for the news.

EURCAD: leaving alone.

GBPCAD: Interesting for the short in the current area, but I will wait for a confirmation.

NZDCAD: I will wait for the trendline break on 4HR; watch the video.

EURCHF: Short at 0.95000

I have quite a few other “possibles” that I will monitor during the week. See the video. I also show areas where I will be interested to buy crypto and metals.

As always, remember correlation! 

New members, please note: If I am looking to take a trade long, for example, 1.5000, I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.

We are NOT a “tipping service” we aim to teach you how to trade for yourself.

Watch the video below for more detailed explanations of this week’s analysis and trade plan.

To find out more about our crypto journey check out the mini-course and if you want to get involved in what I believe is the next boom, scroll to the bottom of the page to find out more: CLICK HERE

I am currently on holiday in the Canary Islands. I recorded the video early Saturday morning. If anything extra ordinary happens over the weekend I may need to revise my plans and Ashley or I will update you in the forum.

650x60 100 Free training course 4

You can watch the full video below, you can read the transcript or view the full screen by clicking the buttons below the video:

Kind regards,

Ashley

Related posts:

InflationYour Governments Lies; What Are You Going to do? 800 x 495They ALL Broke, so how to trade it bald guy on fone and laptop 2Round Up: Tradeable but Tricky Fx Week 24Marcs Weekly Analysis + How To Trade Around News!

None of the Forex Mentor Pro team nor its owners (expressly including but not limited to Marc Walton), officers, directors, employees, subsidiaries, affiliates, licensors, service providers, content providers and agents (all collectively hereinafter referred to as “Forex Mentor Pro ”) are financial advisers and nothing contained herein is intended to be or to be construed as financial advice

Forex Mentor Pro is not an investment advisory service, is not an investment adviser, and does not provide personalized financial advice or act as a financial advisor.

Forex Mentor Pro exists for educational purposes only, and the materials and information contained herein are for general informational purposes only. None of the information provided in the website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, recommendation or sponsorship of any company, security, or fund. The information on the website should not be relied upon for purposes of transacting securities or other investments.

You hereby understand and agree that Forex Mentor Pro, does not offer or provide tax, legal or investment advice and that you are responsible for consulting tax, legal, or financial professionals before acting on any information provided herein. “This report is not intended as a promotion of any particular products or investments and neither Forex Mentor Pro group nor any of its officers, directors, employees or representatives, in any way recommends or endorses any company, product, investment or opportunity which may be discussed herein.

The education and information presented herein is intended for a general audience and does not purport to be, nor should it be construed as, specific advice tailored to any individual. You are encouraged to discuss any opportunities with your attorney, accountant, financial professional or other advisor.

Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties of any kind, either expressed or implied. Forex Mentor Pro disclaims all warranties, including, but not limited to, any implied warranties of merchantability, fitness for a particular purpose, title, or non-infringement. Forex Mentor Pro does not promise or guarantee any income or particular result from your use of the information contained herein. Forex Mentor Pro.com assumes no liability or responsibility for errors or omissions in the information contained herein.

Under no circumstances will Forex Mentor Pro be liable for any loss or damage caused by your reliance on the information contained herein. It is your responsibility to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content contained herein. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.

Marc Walton, owner of Forex Mentor Pro, communicates content and editorials on this site. Statements regarding his, or other contributors’ “commitment” to share their personal investing strategies should not be construed or interpreted to require the disclosure of investments and strategies that are personal in nature, part of their estate or tax planning or immaterial to the scope and nature of the Forex Mentor Pro philosophy.

All reasonable care has been taken that information published on Forex Mentor Pro website is correct at the time of publishing. However, Forex Mentor Pro does not guarantee the accuracy of the information published on its website nor can it be held responsible for any errors or omissions.