Hi members,
I saw many of you catching the AUD shorts last week and profited from it, so well done 🙂
It goes to show if you make a plan ahead for the week and stick to the rules, you will increase your chances of becoming a profitable trader.
YEN
Economist Kazuo Ueda has taken over from his successor as Bank of Japan governor. Now the talks and rumors are about whether he will be changing the policy stance for the BOJ. Although most are predicting he wont be doing it as of yet. But you never say never. If he does change something to strengthen the YEN then we could see a huge drop in USDJPY. Remember this will also affect other YEN pairs as they are correlated. So keep an eye in the news.
The Forex Week Ahead+++++++++++++++++++++++
Do not be in a rush to open new trades at the open as there is Bank holiday across the world. All major banks will be out of the markets which will result in less liquidity, so the markets will most likely consolidate. In the week ahead we have the CPI news for the US which is a very volatile time in the market, so make sure to not leave any trades open or at least make them risk-free. Later in the week you have the BOC rate statement, US PPI and retail sales for Friday. Make a plan to trade around the news.
MAJORS
Keep watching the $index it is now at a major “make your mind up” area on the weekly charts. I said a few weeks ago that even though it was dropping I suspected a move up was more likely than down, so far that has turned out to be the case.
Remember I am looking for “A” grade trades from weekly & daily charts that I can place the orders and then just walk away. A “B” grade is one that I will watch on smaller timeframes to see how it reacts if it hits my zone.
EUR/USD: Im looking for a long at 1.0650 at the weekly 55 EMA on the daily.
USD/CHF: A grade short at 0.94100, watch DXY for correlation.
Do not take the Euro/$ & Chf at the same time. They are correlated so it’s the same “bet.”
GBP/USD: Leaving it alone for now. No clear direction.
AUD/USD: Leaving it alone for now.
NZDUSD: Need a clear break below the EMAS for a short. Watch the video.
USD/CAD: The first area to long at 1.3310 and the A grade for me is 1.30040 which has been a MAJOR area of support and resistance in the past.
USDYEN: leaving alone for now
CROSSES
Some are A grades where I will place forward orders, most pairs have “areas of interest.” I have a lot of similar crosses so be very careful with the correlation.
EURGBP:I have a split order at 0.8710 and 0.8660 is the A grade long for me.
EURAUD: I would be looking anywhere around 1.57 for a long.
EURCAD: I have an order at 1.4450.
AUDCAD: Was successful last week, I’m looking to shore again at 0.90900
AUDNZD: 1.0770 looks interesting for a short. But be careful as it tends to be wild during news events.
GBNZD: Interested to long at 1.94500 for multiple reasons.
GBPAUD: Correlated with GBPNZD, Looking to long around 1.8070
GBPCAD: 1.62400 is the sweet spot for me.
GBPCHF: 1.1490 is where I have placed my forward order. It is a major area of resistance but still far away, been waiting for weeks.
NZDCAD: 0.8410 looks interesting for a long. Although don’t be greedy as its in a triangle and also the 55 MA is in the way. Watch the video. They are both commodity pairs.
AUDJPY: Prefer this one out of all the YENs. 89.80 looks interesting for a short.
As always, remember correlation!
M3 -Shorter timeframes.
I do my analysis on daily and weekly charts first and make a note of the MAJOR areas of support and resistance. Then copy them onto Pierre’s Earth and sky template. Then I make a note of the weekly & monthly pivots points and add them to the charts. You will see lots of opportunities line up during the week. The important thing then is to select a bias for the next few days and do NOT take trades if the price is too near a trend line or pivot. Ideally, you want to buy when the price is near a major support and or pivot point line and has the potential to make at least 40 pips. Vice versa for a short.
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” our aim is to teach you how to trade for yourself.
Watch the video below for more detailed explanations of this week’s analysis and trade plan (click the 4 arrows bottom right to view full-screen):
Regards
Marc
