Hi, this is a copy of the analysis and trade plan that I share with members each Sunday before the markets open.
The next 2 weeks could define the direction of currencies, economies & crypto for the next 4 or 5 years!
As explained in the article I posted yesterday. The US elections, Brexit coming to a conclusion, China’s new 5-year plan & lots of central banks policy meetings.
To be a better trader it’s important that you understand what is going on around the financial world.
Half the battle when trading is knowing when to avoid certain pairs. Last week I cautioned about the Yens. I explained that most of them were flip-flopping with no clear direction and it was best to leave them alone. Leaving them alone turned out to be good advice and I will leave most of them alone again this week unless or until we see some substantial moves, up or down.
The only ones I was interested in last week was the $/Yen & AUd/Yen. Congratulations to member Jonah who had a good win on the $/Yen. It dropped 140 pips. Unfortunately, it missed my entry by 5 pips so I planned it, shared it with you and then missed it 🙁
The other one was the Aud/Yen which also won, but I cautioned that it would probably struggle at 75.00 ( it did), so it probably wouldn’t be a big win. Those 2 are the only Yens I am looking at again this week.
As ever watch the calendar. There is big news on the Aud & Cad on Wednesday and the Yens & Euro on Thursday, see the video.
London Break Out Method back with us?
I also had a decent win on the €/$ last week and the Gbp/$ a couple of weeks ago due to an unusual set up between the market open and Londons.
Both times I made over a 100 pips from a “London break out method.” For years this was my favoured way of trading, but then the market pattern changed and it stopped working. Let’s hope it is back!
Check out the video where I explained what happened, why I took the trade, how I managed them and the €/$ is still going on the balance:
This weeks Trading ideas
Because I trade from longer timeframes some of my setups are the same/similar to last week, but there are some subtle changes where price has advanced along a trend line or Ema.
I explained last week “I am ignoring most of the Yens this week, they are flipping up one minute and down the next. I will only look to trade the $/Yen and possibly the Aud/Yen.”
Because of the Brexit situation I will not trade the Euro/Gbp but may take the Euro/$ & Gbp/$- see the video.
€uro/$: I said last week “The BIG area if it drops is still 1.1520 to long although it’s tricky on the stop”. It’s currently around 1.1700 I am tempted to long it after the market open, but might wait for London.”
This week I will watch 1.1730, swing traders will be interested to short at 1.2000
Chf: Same: It’s near a double bottom if it bounces back up from there the €uro will probably drop. I won’t touch it unless it gets back up around 0.9370/0.9420.
Euro/Gbp: As per my comments above the safest option is to leave it alone this week. 0.8940 might interest me later in the week.
Gbp/$: The BIG area is 1.2840 now. I am looking to long there unless it tumbles below at the open. If it does break (and close on a daily candle) below 1.2670 then I will look for a short.
$/Yen: I missed the entry last week by 5 pips and it dropped 140 🙁 105.60 is a short for me this week. If it moves higher I will short again at 106.90
Cad: Messy and big news on Wednesday: I prefer a long at 1.3020. 1.3000 is huge previous support and resistance I will long if it drops. If it goes up I will short at 1.3400. 1.3200 is an area to watch for a short for those trading shorter timeframes.
Nzd: I will long again, this time at 0.6520 with a stop below 0.6465. Target 0.6690. Swing traders will be looking to short near the 200ema but the stop concerns me.
Aud: Worked again last week: 0.7000 is interesting to long again but there are not multiple reasons for the stop. I won’t place a forward order, but will watch it on smaller timeframes for a possible entry. 0.7200 will interest swing traders.
Aud/Yen: I said last week “Worked again last week with a long at 75.00 but the stop is not great, 74.10 is a lot stronger.” and it turned out to be the case once more. 0.7400 is key on this pair. My slight bias now is to long it but If it breaks below 73.85 then there is room for it to fall a long way so I will look for an M2 short.
Euro/Aud: There is a possible 2000+ pip move brewing here, check out the video and do not dive in until it sets up!
M3 Shorter timeframes
See the new course & recent blog posts as to how I do this: 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 on to 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.
For more up to the minute, updates do not forget to drop by the forum.
Watch the video for more detailed explanations of this week’s detailed analysis and trade plan.