Good morning everyone.

What’s up and whets down this morning?

Well looking at the chart we can see we had a couple of triangle breakouts that took place…..so now we need to wait for the correction followed by possible M2 trade set ups.

What’s a M2 set up ?

A M2 set up is where an important support or resistance level broke…..price pull away from the level…..and then give a correction back to the level that broke followed by the M2 trade setup into the direction of the breakout. (Like in the picture above we had a ascending triangle that broke to the upside)

For a descending triangle the opposite will show. Support will have to break to the downside……price pull away from the level…..and then give a correction back to the level that broke followed by the M2 trade setup to the downside.

We also have a head and shoulder and an inverse head and shoulder pattern that is panning out on some pairs. Did you spot them ???

 

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Lets have a look at some chart this morning.

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1) Euro Index on the DAILY chart:

Notes:

The direction Indi shows short on the 4 hour and long on the daily chart.

Last week we broke the triangle to the downside so possible M2 shorts can be on the cards from 108.29 to 108.44 where we have loads of EMA`S waiting plus the triangle bull trend line.

Will be looking for support at the MS1 pivot at 107.65 and the daily 200 EMA at 107.21 for a possible long set up again.

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2) Euro Dollar on the DAILY chart:

Notes:

The direction Indi shows short on the 4 hour and long on the daily chart.

Last week we broke the triangle to the downside so possible M2 shorts can be on the cards from 1.2283 and 1.2318 where we have loads of EMA`S waiting.

Will be looking for support at the MS1 pivot at 1.2160 and the MS2 pivot where we also have a daily 200 EMA waiting for a possible long set up again.

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3) Euro JPY on the DAILY chart:

Notes:

Looks like we were trapped in a triangle on this one that is breaking to the upside with today’s candle……so we will have to wait for a breakout followed by a M2 long set up from 131.38 and 131.17 areas.

Will be looking for resistance at the MR1 pivot at 132.6 and 133.00 for possible short set ups again.

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4) Euro GBP on the 4 hour chart :

Currently I have an Earth and Sky short zone between 0.8740 and 0.8762 with areas to keep an eye on the 0.8730 (38.2 fib) and 0.8740 and 0.8743 and 0.8755 resistance areas where after I will re look to short this pair again.

Possible counter longs at 0.8700 and 0.8680 support areas.

Notes:

If we make new lows without the correction – follow price with the fib to get the adjusted zone for the week.

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 5) GBP Dollar on the 4 hour chart:

Currently, I have an Earth and Sky long zone between 1.4067 and 1.4017 with areas to keep an eye on the 38.2 fib at 1.4090 and if that breaks at the 200 EMA at 1.4017 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.4143 and 1.4166 and 1.4195 resistance areas.

Notes:

If we make new highs without the correction follow price with the fib to get the adjusted long for the week.

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6) GBP JPY on the DAILY chart:

Notes:

Inverse Head and Shoulder broke to the upside….so look out for a possible correction followed by an M2 long set up from 149.85 to 149.34.

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7) Aussie Dollar on the DAILY chart:

Last week we only closed min 4 pips lower than the opening…..but the main trend is still short. With this little movement, it’s better to fib the daily for a short zone.

Currently, I have an Earth and Sky short zone between 0.7780 and 0.7849 with areas to keep an eye on the 0.7749 and 0.7769 and 0.7780 resistance areas where after I will re-look to short this pair again.

Possible counter longs at 0.7581 support areas.

Notes:

Main resistance at 0.7769 to 0.7780 area.

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8) Aussie JPY on the DAILY chart:

Last week we closed plus 44 pips higher than the opening BUT the main trend is still short – we can’t fib the 4 hour to get a short zone and have to fib the daily chart.

Currently, I have an Earth and Sky short zone between 82.52 and 83.53 with areas to keep an eye on the 82.76 and 83.21 resistance areas where after I will re looking to short this pair again.

Possible counter longs at 79.95 support levels.

Notes:

While the 55 EMA at 83.20 holds my bias will be to look for a short to set up…….but this is forex…..if it does break to the upside I will re-look to short from the MR 1 pivot at 83.97 area.

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9) Dollar JPY on the DAILY chart:

Notes:

The main trend is short according to the direction Indi….however we can fib the daily chart as we already back at last month’s high area.

Possible resistance at 107.12 and 107.47  and 108.00 for possible short setups to follow.

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10) Dollar CAD on the DAILY chart:

Mondays notes:

Head and shoulder I showed you broke to the downside…..However, we sitting on the 200 EMA at 1.2749 that is currently giving support.

I will prefer if the price can break this level first.

Today’s notes:

Price did break the 200 EMA to the downside….so I will wait for a correction followed by a possible M2 short from the 200 EMA again at 1.2749 area.

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11) Dollar Index on DAILY chart:

Notes:

The direction Indi shows long on the 4 hour and short on the daily chart.

Last week we broke the triangle to the upside so possible M2 long can be on the cards from 90.14 to 89.97  where we have loads of EMA`S waiting.

Will be looking for resistance at the MS1 pivot at 90.95 for a possible short up again.

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See you all during the webinar a little later today.

Regards

Pierre

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