Earth SkyGood morning all.

What’s up and what’s down this morning?

Well, let’s have a look……

There is yet more scheduled news for the Aussie, including interest rate news and statement.

The RBA governor Lowe is also making a speech on Tuesday, in Sydney about the housing situation. THAT could cause some big Aussie moves as audience questions are invited and there is a real concern of a housing “bubble” in Australia and particularly in Sydney.

Finally its NFP week, so no forex, please !!!

As ever check the calendar before taking any trades: https://www.forexfactory.com/calendar.php

Keep up to date with various news sites like http://zerohedge.talking-forex.com/live.html & Bloomberg to name a few.

This site is good if you are wanting to check Brexit updates before trading the GBP https://www.newsnow.co.uk/h/

Strongest vs. Weakest Currency Pairs As of Yesterday Morning:

Top 5 strongest and the weakest currency pairs on the 4-hour chart this morning:

Strongest: USD/CAD and Aussie/CAD and NZD/CAD and Euro/CAD and GBP/CAD

Weakest: CAD/JPY and CAD/CHF and GBP/USD and GBP/JPY and GBP/CHF

  • Look out for possible trading opportunities here too at support and resistance levels.
  • Look to the left of the chart to spot them. If you struggle – put it on a line chart.

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1) Euro Dollar on the DAILY chart:

* the Main trend is short….however last week we closed plus 28 pips higher than the opening so we can’t fib the 4 hour for a short zone and have to fib the daily chart to get a short zone *

Currently, I have an Earth and Sky short zone between 1.13613 and 1.14248 with areas to keep an eye on the 1.1364 and 1.1376 resistance areas where after I will relook to short this pair again.

Possible counter longs 1.1320 and 1.1278  and 1.1240 support areas.

Notes:

If price for some reason breaks the short zone to the upside….then I have a plan B short zone between 1.1488 and 1.1567 resistance areas where we have loads happening.

If we don’t get this bullish move….then I will prefer price to break and close under the monthly main pivot and the EMA`s at 1.1364 area before I will re-look to short this pair again……..this was the case yesterday so possible M2 shorts can set up now from 1.1364/74 if it gives the resistance we want.

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2) Euro CAD on the DAILY chart:

* the Main trend is short….however last week we closed plus 225 pips higher than the opening so we can’t fib the 4 hour for a short zone and have to fib the daily chart to get a short zone *

Notes:

Price already broke the earth and sky short zone to the upside if we had to fib the daily chart so we need a plan B

Next line in the sand will be the 200 EMA at 1.5131 where we might find resistance followed by a short set up again.

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3) Euro JPY on the DAILY chart:

* Main trend is short….however last week we close plus 179 pips higher than the opening so we can’t fib the 4 hour for a short zone and have to fib the daily….problem here is we already passed last month’s high areas so we can’t fib the daily too for a short zone so we need a plan B for this pair *

Notes:

The main trend is short so possible resistance levels between the MR1 pivot and 200 EMA – 127.64 to 128.00 and 128.64 areas where I will prefer to look for short setups again.

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4) Euro GBP on the 4-hour chart :

Currently, I have an Earth and Sky short zone between 0.8614 and 0.8657 with areas to keep an eye on the 0.8614 and 0.8627 and 0.8635 resistance areas where after I will re-look to short this pair again.

Possible counter longs at 0.8521 and 0.8440 support areas.

Notes:

If price for some reason breaks the short zone to the upside….then I have a plan B short zone between 0.8726 and 0.8780 resistance areas.

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5) GBP Dollar on the 4-hour chart:

Currently, I have an Earth and Sky long zone between 1.3199 and 1.3123 with areas to keep an eye on the 1.3157 and 1.3123 support areas where after I will re-look to long this pair again.

Possible counter shorts at 1.3354 resistance areas.

Notes:

If price for some reason breaks the long zone to the downside….then I have a plan B long zone between 1.3052 and 1.2972 support areas where we have loads happening.

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6) GBP JPY on the 4-hour chart:

Currently, I have an Earth and Sky long zone between 146.47 and 145.42 with areas to keep an eye on the 38.2 fib at 146.92 and 146.33 support areas where after I will re-look to long this pair again.

Possible counter shorts at 149.47 resistance areas.

Notes:

If price for some reason breaks the long zone to the downside….then I have a plan B long zone between 144.2and 143.63 support areas where we have loads happening.

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7) Aussie Dollar on the 4-hour chart:

Currently, I have an Earth and Sky short zone between 0.7132 and 0.7165 with areas to keep an eye on the 38.2 fib at 0.7116 and 0.7136 and 0.7144 and 0.7161 resistance areas where after I will re-look to short this pair again.

Possible counter longs at 0.7031 and 0.6985 support areas.

Notes:

If price makes a new lower low without the correction follow price with your fib to get the adjusted trading zone for the week.

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8) Aussie JPY on the DAILY chart:

* The main trend is still short….however last week we closed plus 29 pips higher than the opening so we can’t fib the 4 hour for a short zone and have to fib the daily chart….problem price already back at last month’s highs so we need to look for a plan B *

Notes:

Plan B: Will look for possible resistance at the MR1 pivot at 80.07 and the 200 EMA at 80.65  and the MR2 pivot at 81.16 resistance areas followed by a short set up.

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9) Aussie/NZD on the DAILY chart:

Currently, I have an Earth and Sky short zone between 1.0457 and 1.0502 with areas to keep an eye on the 1.0466 and 1.0502 resistance areas where after I will re-look to short this pair again.

Possible counter longs at 1.0344 and 1.0268 support areas.

Notes:

If we make new lower lows without the correction – follow price with the fib so that the short zone can adjust.

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10) Dollar JPY on the 4 hour chart:

Currently, I have an Earth and Sky long zone between 111.21 and 110.78 with areas to keep an eye on the 38.2 fib at 111.45 and 111.20 and 111.00 support areas where after I will re-look to long this pair again.

Possible counter shorts at 112.00 and 112.54 resistance areas.

Notes:

If we make new higher highs without the correction – follow price with the fib so that the long zone can adjust.

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11) Dollar CAD on the 4 hour chart:

Currently, I have an Earth and Sky long zone between 1.3224 and 1.3168 with areas to keep an eye on the 38.2 fib at 1.3251 and 1.3239 and 1.3224 support areas where after I will re-look to long this pair again.

Possible counter shorts at 1.3365 and 1.3432 resistance areas.

Notes:

If we make new higher highs without the correction – follow price with the fib so that the long zone can adjust.

Speak soon.

Pierre