Good morning everyone.

How you all doing this stunning Tuesday ?

Things look a little slow at the moment but it is still early in the week and I expect the market to heat up a little later today.

Please take note of my time frames as we have loads of daily charts this morning with my Earth and Sky trading zones.

I made notes for each specific pair so that you can understand why I had to fib the daily charts for the zones.

The Spaghetti indicator:

All the currencies are flat this morning so I will wait for the Indi to show me later on what’s overbought and what’s oversold and then sift my focus to the charts to spot potential set ups at key road block areas. The CHF and Euro currency is close to overbought and the USD currency close to oversold but not there yet !!

  • If you want to add the overbought and oversold areas to this Indi…..right click on the RS all Indi……then go to the RS All properties…….here we go to the levels tab…..then add the 8 and 13 and min 8 and min 13 line and click on OK.

  • Remember then to save a new template.

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1) `Red Flag News` that can make you lose your pants if you are not careful. 💡

You can use the following web site for `SCHEDULED NEWS` for the week @ http://www.dailyfx.com/calendar

Don`t take any trades just before `Red Flag News` If you are already in a trade, protect your entry. I don’t want to meet up with you at Little Beach, Maui, Hawaii. Did you know this is a nudist beach?

For reference if you don’t want to believe me, have a look at the 4th of April 2013 at all the JPY pairs what happened with price after `Red Flag News` came out. ALWAYS TRADE WITH A STOP! 

Still don’t believe me? Then you must be new to Forex Trading

Have a look at what the Swiss did to the market on the 15th of January 2015!!

You would have lost the shirt on your back, your house, your car, your personality and your virginity for a 2nd time if you didn’t have a stop in place!!! 👿

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2) Where is the `Forum Hang out Spot` that everyone is talking about?

On the top of this main page, go to the `Members Forum` Tab and click on it…….once in there, look for `Pierre`s Corner` and click on it………Once in there look for `Pierre`s Trading week `and click on it……..once in there, look for the Current week`s Thread Tab and click on it………..easy as pips! 😉

Or if you have the need for speed and want to trade Gold. Oil and some other instruments and want to hang out with Omar………… On the top of this main page, go to the `Members Forum` Tab and click on it…….once in there, look for the `Operation Gold Rush` Tab and click on it – there you have it, you have struck gold!! 🙂  

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3) This week`s Analysis:

This is my current `Earth and Sky Trading Zones` – Please take note of the time frames I am looking at. ❗

Sometimes I will refer to `The mother in law` in my video`s or in my write up. The mother in law represents the 200 EMA (the pink line) on that specific time frame.

If you new to the `Earth and Sky` method, please make sure you download your free e-book.

Go to the `Forex Education Tab` here in the main blog and look for the `Earth and Sky Trading System` where you will find helpful videos using this system and some Indi`s I use.

Remember to have a look at some of the other methods we teach here at Forex Mentor Pro too.  

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Let’s have a look what`s cooking in the FOREX kitchen this morning:

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1) Euro/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 38  pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy”

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Last week we closed min 38 pips lower than the opening but the main trend is still up, so we couldn’t fib the 4 hour chart to get the Earth and Sky trading zone and had to fib the daily chart.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.0806 and 1.0688 levels

Potential area to look for reaction: At the 1.0863 (38.2 fib) and the cluster EMA`S between 1.0823 and 1.0793 levels.

Potential Profit take areas: At the 1.0922 and 1.1004 levels.

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.1015 and 1.1049 levels.

Potential Profit take areas: At the 1.0922 and 1.0846 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

Big resistance roadblock for this pair at the MR1 pivot at 1.1049 area.

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2) Euro/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 25 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 124.22 and 123.59 levels

Potential area to look for reaction: At the 124.51 938.2 fib and WR1 pivot) and 124.22,124.00 and 123.77 and 123.62 levels.

Potential Profit take areas: At the 124.55 and 124.96 levels.

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 125.33  levels.

Potential Profit take areas: At the 124.51 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

Make sure you have confirmation to short before you just jump in with a counter trade.

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3) Euro/GBP on the DAILY chart:

Difference between last week’s open/close: Plus 27 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Price is ABOVE the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction:
Potential trading zone: Between the 0.8448 and 0.8519 levels

Potential area to look for reaction: At the 0.8501 and 0.8519 levels

Potential Profit take areas: At the 0.8451 and 0.8413 levels.

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 0.8558 and 0.8589 levels.

Potential Profit take areas: At the 0.8520 and 0.8451 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

The direction Indi is currently mixed on the daily but my bias as still to look for shorts on this one.

However….keep an eye on the negative correlated GBP/Dollar…..if that one start to tumble this one can jump !!!

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4) GBP/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 78 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Last week we closed min 78 pips lower than the opening but the main trend is still up, so we couldn’t fib the 4 hour chart to get the Earth and Sky trading zone and had to fib the daily chart.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.2676 and 1.2519 levels

Potential area to look for reaction: At the 1.2767/54/21 and 1.2676 levels

Potential Profit take areas: At the 1.2909 and 1.2991 levels.

MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: No man’s land.

Counter Trades:

Potential Counter Trades: At the 1.2991 levels.

Potential Profit take areas: At the 1.2909 and 1.2767 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

We have MACD divergence showing here so I am expecting a correction on this one.

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5) GBP/JPY on the DAILY chart:

Difference between last week’s open/close: Min 18 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Last week we closed min 16 pips lower than the opening but the main trend is still up, so we couldn’t fib the 4 hour chart to get the Earth and Sky trading zone and had to fib the daily chart.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 141.83 and 138.69 levels

Potential area to look for reaction: At the 38.2 fib at 143.31 and 142.00 and 142.35 and then at 141.46 in the zone..

Potential Profit take areas: At the 147.47 and 148.11 levels

MACDEE Divergence:  No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 147.47 and 148.11 levels.

Potential Profit take areas: At the 146.57 and 146.00 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

In my book we way overbought and I want a big correction. Currently the 4 hour 55 EMA is keeping price up…..but if that breaks we can be in for a fast move to the downside.

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6) Aussie/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 21 pips.

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

We cant fib the 4 hour here this morning as price already broke to the upside and is currently at last weeks high area so I had to fib the daily chart for an Earth and Sky short trading zone.

Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 0.7485 and 0.7562 levels

Potential area to look for reaction: At the 0.7448 938.2 fib) and 0.7483 and 0.7500 and 0.7527 levels.

Potential Profit take areas: At the 0.7340 and 0.7320 levels

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 0.7340 and 0.7329 levels.

Potential Profit take areas: At the 0.7402 and 0.7448 levels

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

We have a roadblock at the 38.2 fib ….however I will prefer if we can get to the 200 EMA at the 50% fib at 0.7483 area.

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7) Aussie/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 21 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Notes:

I am sitting on my hands with this one. I don’t like the way how it doesn’t respect the EMA`S at 83.80.

I will re look to short from the MR 1 pivot at 85.08 and long from the MS1 pivot at 81.49 with a profit take at 83.80 on both set ups.

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8) USD/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 66 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 113.39 and 112.89 levels

Potential area to look for reaction: At the 113.37 and 113.20 levels.

Potential Profit take areas: At the 114.00 and 114.36 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 114.36/40 levels.

Potential Profit take areas: At the 113.37 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

While the 55 EMA at 113.20 holds, I will be looking for long set ups…….if it breaks to the downside for some reason -then I will sit on my hands as we can drop to the WS1 pivot at 112.35 and even as low as 112.00 where we also have a 55 and 200 EMA waiting.

If this will be the case…..I will re look to long from here.

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9) USD/CAD on the DAILY chart:

Difference between last week’s open/close: Plus 48 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

We cant fib the 4 hour here this morning as price already broke to the downside and already took last weeks low out – so I had to fib the daily chart for an Earth and Sky long trading zone.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.3507 and 1.3364 levels.

Potential area to look for reaction: At the 1.3575 ( 38.2 fib) and 1.3558 and 1.3507 levels.

Potential Profit take areas: At the 1.3675 and 1.3700 and 1.3793 levels.

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.3793 and 1.3817 levels.

Potential Profit take areas: At the 1.3675 and 1.3575 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

First roadblock at the 38.2 fib this week so keep an eye on 1.3575.

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10) USD Index on the DAILY chart:

Difference between last week’s open/close: Plus 43 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? N/A

If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.

Earth and Sky Trading Zone for the week:

Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.

Last week price closed plus 43 pips higher than the opening but the main trend is down, so we can’t fib the 4 hour chart for the Earth and Sky zone – we have to fib the daily chart.

Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 99.91 and 100.63 levels.

Potential area to look for reaction: At the 99.55/59 ( 38.2 fib) and 99.91 levels.

Potential Profit take areas: At the 98.46 and 97.97 levels.

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 98.46 and 97.97 levels.

Potential Profit take areas: At the 99.20 and 99.55 levels.

Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!

Notes:

Wait for price to come to you.

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That`s that. 🙂

Pop over to the forum if you need any help or have any questions !!!

Regards

Pierre

Make the video clip bigger to see the levels to see the levels more clearly !!!

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