Good morning everyone.

A bit of a bumpy ride this week as some pairs just gave support or resistance areas the middle finger as it raced past it.

Pairs that comes to mind here will have to be the Aussie/Dollar and the correlated Aussie/JPY that dropped like a stone…….breaking the mother in law dining room tables (200 EMA) and the 55 EMA s to the downside…………………..

and then the long awaited head and shoulder patterns I showed you over the last month or so on the Euro/Dollar and the inverse head and shoulder patterns on the USD/CAD and the Dollar Index triggered too this week

All three of them broke the necklines and that is why we had these strong moves over all the other pairs too.

Did you spot them?   

Don’t worry if you dint……..but take the opportunity to look at the charts and learn from it so that you in future can identify these patterns when you chart flipping.

I dint take any of the breaks as I wasn’t around at the time but we will hopefully get an opportunity to get in next week again……however – the spookily accurate Marc Walton got in on the Dollar/CAD with a M2 long from the neckline and had one super ride…Currently in over 200 odd pips and hoping to get to the inverse head and shoulder target of 500 pips !!!

Well I think Marc got a little jealous when Crosby took his trophy last week – and came back with a vengeance !!!

So lets give the trophy back to Marc for now as it was a super call he made in the webinar !!

Remember…….most pairs are in some way or form correlated –  if the big boy currency pairs makes big moves – the others will show reaction.

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Brokers sending out a notification: 

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Ok…..let’s have a look how we did this week.

I dint have loads of screen time this week but still managed to get well over my weekly target of a 100 pips.

1)  Short on the Euro/GBP from last week from 0.9004 that got kicked out with the correction when it hit the trailing stop I had just above the cluster  EMA`S we had at 0.8935 – so this one gave me 50 odd pips.

2) Short on the Euro/JPY on Monday to close that GAP that gave me 50 odd too.

3) Short yesterday on the GBP/Dollar from 1.3235 after price closed under the envelope on the 60 min chart…….also taking 50 odd.

Kicking myself as I dint expected the current bearish move that is currently 130 odd pips down from my original entry at 1.3235.

Lets have a look how we do with our analysis this week?

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1) Euro/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 57 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.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/JPY and the Euro/GBP. Be careful; don’t take the same trades on these four pairs at the same time!

Also remember: This pair is `NEGATIVE CORRELATED` (moving in the opposite direction) as the Dollar/CHF pair. Be careful; DO NOT OVER EXPOSE YOUR ACCOUNT BY PLACING OPPOSITE TRADES ON THESE TWO PAIRS.

Notes:

Currently sitting just under the cluster of EMA`S at 1.1805.

The Head and Shoulder pattern I showed you two weeks ago is still in play……also looks like we trapped in a triangle on the daily too.

If we break the triangle to the downside I will look to short to the  MS1 pivot at 1.1656 where after I will re look for support to long again.

The neckline for the head and shoulder pattern is at 1.1700/1656 so that need to break first if we want to trade the pattern to the upside.

If that is the case price can go visit the daily 200 EMA at 1.1455 where I will re look for support to go long again.

Wednesday`s notes:

Still same outlook as above.

Also keep an eye on the negative correlated Dollar/CHF…..the chart looks cleaner at the moment and we hitting resistance levels at 0.9930 and 0.9952 where I will re look to counter short from.

Fridays notes:

We waited for a very long time and after almost a month price broke yesterday the head and shoulder neckline to the down side –  I don’t like trading Fridays so I will re look at it on Monday and see where I will look for shorts set ups again.

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Dint have this on Tuesday – Wednesday`s notes:

 2) USD/CHF on the 4 hour chart:

Difference between last week’s open/close: Plus 112 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 0.9806 and 0.9768 levels

Potential area to look for reaction: At the 0.9806 and 0.9799 and 0.9786 levels.

Potential Profit take areas: At the 0.9882 and 0.9906 levels

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 0.9882 and 0.9906 levels

Potential Profit take areas: At the 0.9818 level.

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 !!!

Correlation: This pair is `NEGATIVE CORRELATED` (moving in the opposite direction) as the Dollar/CHF pair. Be careful; DO NOT OVER EXPOSE YOUR ACCOUNT BY PLACING OPPOSITE TRADES ON THESE TWO PAIRS

Notes:

We currently in no man’s land so wait for price to come to you.

Fridays notes:

I didnt manage to scrape a little bit of pips on this one from just above the WR1 pivot at 0.9906 as my stop got triggered – the main trend was strong as we didn’t get the correction to the 55 EMA where I wanted to take my main profit and wanted to look for longs again..

Instead – price turned and had a bullish run again breaking the WR1 and WR2 pivot to the upside.

Currently we hitting the big psychological level at 1.0000 just above the MR2 pivot so possible roadblock here over the next couple of days !!!

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3) Euro/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 191 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 132.96 and 132.34 levels

Potential area to look for reaction: At the 133.25 (38.2 fib) and 133.00 and 132.96 and 132.51 levels.

Potential Profit take areas: At the 134.19 and 134.97 levels

MACDEE Divergence: No
Stochastic: No man`s land

Counter Trades:

Potential Counter Trades: At the 134.19 and 134.97 levels

Potential Profit take areas: At the 133.35 level.

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 !!!

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/USD and the Euro/GBP. Be careful; don’t take the same trades on these four pairs at the same time!

Notes:

We opened with a GAP on Monday -This GAP already closed yesterday. I got in a little late but took it after I had a ribbon cross on the 30 min chart yesterday.

Key support for me this week will have to be at the 4 hour 55 and psychological level at 133.00 this week.

Wednesday`s notes:

We had a nice long set up from the original 38.2 fib at 133.25 that gave us a good run but we hitting now resistance areas so I will be looking for roadblocks at 134.50 and 135.00 for possible counter shorts.

Remember we made new highs so follow price with you fib to get the adjusted Earth and Sky short zone.

Will re look to long again from the 38.2 fib, weekly main pivot and 55 EMA at 133.38 once we get there.

Fridays notes:

Price found resistance at Wednesdays high yesterday at 134.56 and turned bearish and dropped all the way back into the Earth and Sky long zone.

We have a mother in law 200 EMA and WS1 pivot at the 75% fib at 132.48 so I will be keeping an eye on that for support to long from again.

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4) Euro/GBP on the 4 hour 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.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/Dollar and the Euro/JPY. Be careful; don’t take the same trades on these four pairs at the same time

Notes:

The 4 hour direction Indi is all mixed up……the daily direction Indi is also all mixed up with the directions this morning.

I will however look for possible short set ups from the 0.9000 resistance level and possible long set ups from the daily 200 EMA at 0.8820 level again this week.

I am still in my short I took last week and waiting for possible profit take at 0.8820 area.

Wednesday`s notes:

Cutting the EMA`S to the upside….then to the downside this week. The plan is still the same as above.

Fridays notes:

Price broke yesterday to the downside and we getting closer to our long area again at 0.8837 and 0.8823 so I will be keeping an eye on that.

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5) GBP/Dollar on the  4 hour and DAILY chart:

Difference between last week’s open/close: Min 97 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: Mixed
Potential trading zone: Between the 1.3201 and 1.3258 levels

Potential area to look for reaction: At the 1.3208 levels.

Potential Profit take areas: At the 1.3100 levels

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 1.3083 levels

Potential Profit take areas: At 1.3180 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 !!!

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the GBP/JPY pair. Be careful; don’t take the same trades on both pairs at the same time!

Notes:

The 4 hour is mixed with the direction Indi and still long on the daily chart – However the fundamentals tells us to look for shorts that is why I fib the 4 hour this week to get a short zone. Price needs to close first under the EMA`S we have at 1.3200 before I will re look for a short set up.

On the daily chart it looks like we might be trapped in a triangle.

Wednesday`s notes:

We had a super M 2 short from the 50% fib and EMA`s at 1.3204 ( 4 hour) that gave us plenty of pips. Price dropped over 100 pips but we had now a pullback….I will re look for price to find resistance at the roadblock at 1.3204 where I will once again look to short from if it holds.

Fridays notes:

Price broke the cluster EMA`S again to the upside after my Wednesday post but found resistance again at 1.3285 where after it dropped back breaking the cluster EMA`S again to the downside…….looking at the chart we can see on the 4 hour this morning that its messy and by the looks of it we might be trapped in a triangle on the daily chart.

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6) GBP/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 176 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 149.13 and 148.45 levels

Potential area to look for reaction: At the 149.04 and 148.65 levels.

Potential Profit take areas: At the 150.49 and 151.00 levels.

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 150.49 and 151.00 and 151.36 levels

Potential Profit take areas: At the 149.57 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 !!!

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the GBP/Dollar pair. Be careful; don’t take the same trades on both pairs at the same time!

Notes:

We opened with a GAP on Monday. This GAP did close already yesterday. Currently in no man’s land so wait for price to come to you.

Wednesday`s notes:

This one came down to the 50% fib we had at 149.13 and burned here immediately before we had a bullish move. If you still in a long take note…we hitting now last week’s high area at 150.50 so possible roadblock and profit take area.

Fridays notes:

Price broke the roadblock area ( previous high are of Monday ) so we had to follow it with the fib to get an adjusted earth and sky long zone.

Price touched the WR1 pivot at 151.36 and burned fingers and dropped back a 170 pips.

I will keep an eye on the weekly main pivot and 55 EMA at the 50% fib at 149.55 for support for possible longs…..however its Friday so be careful .

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7) Aussie/Dollar on the 4 hour chart:

Difference between last week’s open/close: Min 79 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 under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 0.7834 and 0.7862 levels

Potential area to look for reaction: At the 0.7832 (38.2 fib) and 0.7842 and 0.7854 and 0.7861 levels

Potential Profit take areas: At the 0.7796 and 0.7777 levels

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 0.7777 and 0.7745 levels.

Potential Profit take areas: At the 0.7832 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 !!!

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the AUD/JPY pair. Be careful; don’t take the same trades on both pairs at the same time!

Notes:

If the WR1 pivot at 0.7777 breaks to the downside then we will go visit the mother in law 200 EMA at the WS2 pivot were I will re look to long this pair again.

Wednesday`s notes:

This one dropped like a stone with the news we had. We broke the WS1 and WS2 pivot and daily 200 EMA to the downside. Follow price with your fib to get the adjusted trading zone.

I will re look for shorts from 0.7744 where we have the daily 200 EMA or 0.7777 where we have the WR1 pivot ( now resistance) or at 0.7813 in the new earth and sky trading short zone.

Possible support at the WR3 pivot coming up at 0.7693 for possible counter longs if we find support

 Fridays notes:

This one is still keeping making new lows but we getting closer now to the MS2 pivot at 0.7594 where I will re look to long if we find support……with shorts from 0.7713 and 0.7742/68 area again.

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8) Aussie/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 82 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!

Did the gap close? YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 88.42 and 88.10 levels

Potential area to look for reaction: At the 8.41 and 88.18 levels.

Potential Profit take areas: At the 89.00 and 89.47 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 89.00 and 89.47 levels.

Potential Profit take areas: At the 88.63 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 !!!

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the AUD/USD pair. Be careful; don’t take the same trades on both pairs at the same time!

Notes:

If  price breaks the 55 EMA at 88.41 for some reason to the downside….. be careful as we might go visit the mother in law at 88.10 where I will re look to long again.

Wednesday`s notes:

This one followed the Aussie/Dollar as they are correlated. We dropped past the long zone after the news and broke the 4 hour 200 EMA too…..so possible M2 shorts from 88.07 and 88.37 maybe on the cards

Fridays notes:

We didn’t get the M2 short – price just kept on making new lows but we getting closer now to the MS3 pivot at 86.89 where I will re look to long if we find support……with shorts from 87.83 and 88.00 area again.

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9) USD/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 216 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 112.89 and 112.29 levels

Potential area to look for reaction: At the 112.87 and 112.46 levels.

Potential Profit take areas: At the 114.10 and 114.87 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 114.10 and 114.87 levels.

Potential Profit take areas: At the 113.28 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:

Currently in no man’s land so wait for price to come to you.

Wednesday`s notes:

This one had a nice correction to the weekly main pivot at 113.28 and 38.2 fib where after we had a nice long set up that is currently hitting profit take areas at last week’s high.

I will re look to counter short from 114.50 and 114.87 if we get there.

Fridays notes:

Currently hitting this week`s high area again at 114.24  so possible roadblock area if it holds for shorts otherwise I will re look at 114.87 if we break to the upside to short from.

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10) USD/CAD on the DAILY chart:

Difference between last week’s open/close: Plus 159 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.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Dollar Index. Be careful; don’t take the same trades on both pairs at the same time!

Notes:

We had a triangle on this one that broke to the upside on Thursday  –  it’s also an inverse head and shoulder pattern with the neckline at 1.2550 so possible pullback followed by a M2 long set up from this level if we find support here again.

The Dollar Index still didn’t break to the upside so take note.

Wednesday`s notes:

The cad made new highs on the 4 hour chart. It looks better now and we can fib the 4 hour for a earth and sky long zone. I have a zone between 1.2572 and 1.2512 with areas of support at 1.2572 and 1.2517 where I will re look to long from.

Possible counter short coming up as we hitting the WR1 pivot at 1.2700 – We have MACD divergence showing on the 4 hour so this is a warning sign that correction might be on its way.

Fridays notes:

Well well…..did this one give a middle finger to all the roadblocks we had at the WR1 and WR2 and daily 200 EMA. Price was of like a rocket after  it broke the inverse head and shoulder neckline to the upside early in the week.

The red flag rate announcement helped this one along – I will re look on Monday how to play this one again.

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11) USD Index on the 4 hour chart:

Difference between last week’s open/close: Min 75 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.

Correlation: Remember that the Dollar Index is negative correlated with the Euro Index  (They move in opposite direction) so only take one trade at a time as you will double your risk if you took trades on both index`s.

If you don’t have the index on your platform…..download a demo account with Forex LTD at http://www.forexltd.co.uk/

Notes:

The inverse Head and Shoulder pattern I showed you over the last 2  weeks is still in play……also looks like we trapped in a triangle on the daily too.

If we break the triangle to the downside I will look to short to the  MS1 pivot at 91.48 where after I will re look for support to long again.

The neckline for the inverse head and shoulder pattern is at 94.00/14 so that needs to break first if we want to trade the pattern to the upside.

Wednesday`s notes:

Plan is still as above. Inverse neckline still holding price down at the moment.

Fridays notes:

We waited for a very long time and after almost a month price broke yesterday the inverse head and shoulder neckline to the up side –  I don’t like trading Fridays so I will re look at it on Monday and see where I will look for long set ups again.

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13) NZD/Dollar on the 4 hour chart:

Difference between last week’s open/close: Min 238 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 under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 0.7059 and 0.7129 levels

Potential area to look for reaction: At the (38.2 fib) at 0.7026 and 0.7059 levels.

Potential Profit take areas: At the 0.6926 and 0.6852 levels

MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 0.6900 and 0.6852 levels

Potential Profit take areas: At the 0.7026 level.

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:

If price makes new lows without the correction….follow price with the fib so that the earth and sky short zone can adjust.

Wednesday`s notes:

Dint give notes for this one on Wednesday

Fridays notes:

This one just slowly made new lows everyday this week so we had to follow price to the downside as we had now correction yet.

Currently at a support area but I will stick with the main trend for now and re look to short from 0.6968 and 0.7000 areas if we get back up there.

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Please remember we are NOT a “tipping service.” What we aim to teach you here at fxmentorpro is how to look for trade set ups using different methods, taking you’re trading to the next level.

Have a good one mates

Pierre 😛

`Learn from yesterday, Live for today and hope for tomorrow`

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