In today’s live webinar Thinus went through the M2 setups and I went through Pierre’s Earth and Sky in the second half.
The figures for Flash PMI weren’t great today for Both Europe and The UK.
The French economy contracted for the first time in a year and a half. Similarly, the German economy slowed down in August for another month.
Cost of living, inflation, and rising energy prices are some of the factors affecting the Eurozone a lot.
Add to that the Euro has finally broken parity, the first time since 2002. This is not great news for US or Euro, well especially for the Euro because their currency has lost some of its value.
If you are holding on to some dollars then you would get more Euro’s if things stand as they are. I converted some of my USDs into GBPs this morning.
The GBP manufacturing data wasn’t good either and was a lot worse than expected. It is showing signs of a slowdown and possible stagflation in the months ahead.
Bearish for the GBP.
Also, the experts have warned that inflation could hit 18% next year in the UK, on rising energy bills.
Elsewhere China has cut its mortgage rates as officials work to support the crisis-hit property market. I wrote an article last week on the China housing crisis which you can view below in my blog.
Plenty of Setups
This week I personally didn’t see many setups on the M2 as the price is far away from the A grade area and the multiple EMAs. We do have a few that we shared in the webinar such as the EURGBP on the daily, NZDUSD on the 4 Hour and the GBPJPY long around the 160 area.
The Earth and Sky looks a lot better this week with multiple setups. I mentioned in the live webinar when it comes to the majors don’t enter on all of them.
Remember correlation, so make sure to take one setup or risk half if you are taking two as they are correlated.
You are adding more risk to your table, learn to diversify your setups.
I entered the CHFJPY in the morning today. I showed you how I used the USDCHF as an extra confluence to enter the trade. As I’m writing this article I got taken out on this trade due to the surprise USD Manufacturing data. The data came out a lot worse than expected. On to the next trade we go.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
You can view the webinar video below: