Good morning everyone.

Tuesday morning so let the games begin !!

redflag1

As ever start with the calendar to check what news is due out, especially red flag news and speeches by central bankers that can rock currency prices.

This weeks main events are various bank stress test reports that could really rock a pair. Yellen testifies to the senate and she and other FOMC members are starting to agree with our own Judith that the lack of inflation is a major concern and may put a stop to, or at least slow down possible increases in 2018.

OPEC are meeting which could affect oil prices, although no one believes what they say anymore as all the major producing countries lie all the time!

Best advice, as ever do not open new trades a few hours before the release. if there is volatility then let the dust settle afterwards.

I use Forex Factory’s Calendar

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judit

Our wish list for the week: 

  • EURO/USD: Looking for a long from 1.1860 and 1.1821 and 1.1800.

 

  • GBP/USD: Looking for a long from 1.3292 and 1.3272 and if that breaks we will look for support at the WS1 pivot where we also have EMA`S waiting to give support.

 

  • AUD/NZD: Looking for a short from 1.1013 and 1.10382 or 1.10567.

 

  • GBP/NZD: Looking for a long from 1.90786 and 1.89382.

 

  • USD/SGD: Looking for a short from 1.3487 and 1.3500.

 

Sub list: AUD/USD…needs a firmer USD which we do not have.. …Looking for a short from 0.7670 and 0.7717

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Let’s have a look what’s cooking in the Forex kitchen for the early part of this week: 

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1) Euro Dollar on the 4 hour chart:

Currently I have an Earth and Sky long zone between 1.1836 and 1.1774 with areas to keep an eye on at the 38.2 fib at 1.1836 and 1.1800 and 1.1774 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.1960 and 1.2000 areas.

Notes:

We highly overbought in my eyes and we need a deeper correction on this pair.

If price makes new highs without the correction follow price so that the long zone can adjust.

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2) Euro JPY on the 4 hour chart:

Currently I have an Earth and Sky long zone between 132.18 and 131.66 with areas to keep an eye on at the cluster EMA`S that starts at the 38.2 fib at 132.421 down to the WS1 pivot at 131.83 support areas where after I will re look to long this pair again.

Possible counter shorts at 133.21 and 133.84 areas.

Notes:

The direction indicator is long on the daily chart but mixed on the 4 hour chart….however the 34/55 EMA`S are about to cross that will make the direction long on the 4 hour plus we closed 172 pips higher than the closing of Friday showing a clear strong bullish move so that is why I fib the 4 hour this week to get a long zone.

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3) Euro GBP on the 4 hour and daily chart :

Notes:

The direction indicator is mixed on the daily and long on the 4 hour chart.

We broke loads of EMA`S at 0.8900 to the downside then again to the upside.

I will however be sitting on my hands for a bit as it looks like we might be trapped in a triangle for now plus price currently getting closer to the bearish trend line of the triangle so it’s better to wait and see what it wants to do here.

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 4) GBP Dollar on the 4 hour  chart:

Currently I have an Earth and Sky long zone between 1.3286 and 1.3236 with areas to keep an eye on at the 38.2 fib at 1.3309 and 1.3292 and 1.3272 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.3383 and 1.3398 areas.

Notes:

We have MACD divergence on the 4 hour so possible deeper correction on the cards. If the 55 EMA at 1.3272 breaks for some reason to the downside then be careful as we can drop to the daily 55 EMA and 4 hour 200 EMA at 1.3200/15 area.

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5) GBP JPY on the weekly chart:

Notes:

In my book this will be the danger pair for the weeks AHEAD. We stuck at a cluster of EMA`S between 148.43 and 148.80 PLUS we trapped in a triangle on this one so this is a time bomb and I will rather wait for the explosion than premature predict which way the explosion will be.

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6) Aussie Dollar on the DAILY chart:

Currently I have an Earth and Sky short zone between 0.7712 and 0.7803 with areas to keep an eye on 0.7670 (38.2 fib) and 0.7803 resistance areas where after I will re look to short this pair again.

Possible counter longs at 0.7558 and 0.7532 support areas.

Notes:

The direction indicator is short on both time frames – however last week we closed plus 59 pips higher than the opening so we can’t fib the 4hour to get a short zone….but we can fib the daily to get the short zone.

Currently we sitting at the daily 55 EMA at 0.7608 but I will prefer a bigger correction to at least 0.7679 area.

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7) Aussie JPY on the DAILY chart:

Currently I have an Earth and Sky short zone between 86.71 and 87.89 with areas to keep an eye on 86.14 (38.2 fib and MS1 pivot) and 86.48 and 86.71 resistance areas where after I will re look to short this pair again.

Possible counter longs at 84.35 and 83.76 support areas.

Notes:

The direction indicator is short on both time frames – however last week we closed plus 38 pips higher than the opening so we can’t fib the 4 hour to get a short zone….but we can fib the daily art.

If price makes new lows without the correction follow price so that the short zone can adjust.

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8) Dollar JPY on the 4 hour chart:

Currently I have an Earth and Sky short zone between 111.81 and 112.28 with areas to keep an eye on 111.72 (38.2fib) and 111.85 and 112.00 resistance areas where after I will re look to short this pair again.

Possible counter longs at 110.94 and 110.20 support areas.

Notes:

The direction indicator is mixed on the daily chart but short on the 4 hour chart plus we closed min 38 pips lower than the opening.

While the 4 hour 200 EMA holds at 112.60 holds my bias will be to look for shorts.

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9) Dollar CAD on the DAILY chart:

Notes:

Looking at the daily chart then my only plan I can put together is to look for shorts at the daily 200 EMA at 1.2815 and last month’s high area at 1.2910

Otherwise I will re look to long from 1.2670 And 1.2600 and the 1.2577  areas ( 200 EMA, 55 EMA and the MS1 pivot areas )

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10) Dollar SGD on the 4 hour chart :

Currently I have an Earth and Sky short zone between 1.3504 and 1.3542 with areas to keep an eye on at 1.3487 (38.2fib) and 1.3507 and 1.3523 resistance areas where after I will re look to short this pair again.

Possible counter longs at 1.3422 support areas.

Notes:

Wait for price to come to you !! Currently in no mans land.

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11) Dollar Index on the 4 hour chart :

Currently I have an Earth and Sky short zone between 94.34 and 93.76 with areas to keep an eye on 93.21 ( weekly main pivot and 38.2 fib) and 93.34 and 93.43 and 93.74 resistance areas where after I will re look to short this pair again.

Possible counter longs at 92.26 areas.

Notes:

Wait for price to come to you!! Currently in no mans land.

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Regards

Pierre