Good morning everyone.

Marc warned us on Sunday that we need to be careful with the Euro and CHF pairs as we had the French elections and talks of reducing QE ( money printing) that can have a big impact on the market.

Check out Bloomberg or the video for more detail: 

https://www.bloomberg.com/europe

O boy o boy….was he right!!

Most pairs opened with huge GAPS this morning and this is an typical example why we always recommend NOT to have trades open over a weekend.  SOME GAPS WERE OVER 150 PIPS…..so imagine being on the wrong side of that !!!

We had huge moves yes……..but huge moves brings opportunities so all we need to to is to keep calm, mind the GAPS…….and wait for the corrections as we know by now that 90% of the time GAPS do get filled again.

Let’s have a quick look:

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1) Euro Dollar on the 4 hour chart:

Currently I have an Earth and Sky long zone between 1.0754 and 1.0682 with areas to keep an eye on at the 1.0777 and 1.0701 and 1.0687 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.0898 and 1.0978 areas.

If we make new highs without the correction….follow price with your fib to get the adjusted long trading zone for the week.

BIG GAP this morning, so look for a GAP trade.

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2) Euro JPY on the 4 hour chart:

Currently I have an Earth and Sky long zone between 117.55 and 116.26 with areas to keep an eye on at the 118.32/16 and 117.03 areas where after I will re look to long this pair again.

Possible counter shorts at 120.00 and 120.13 areas.

If we make new highs without the correction….follow price with your fib to get the adjusted long trading zone for the week.

BIG GAP this morning, so look for a GAP trade.

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3) Euro GBP on the 4 hour chart :

Big roadblocks for this one coming up from 0.8510 to 0.8542 where we have 2 x 200 EMA`SW plus a daily 55 EMA at the WS1 pivot.

Possible counter longs at 0.8354 and 0.8310 areas.

BIG GAP this morning, so look for a GAP trade but be careful as we have a support level at 0.8438..

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4) GBP Dollar on the 4 hour chart:

Currently I have an Earth and Sky long zone between 1.2709 and 1.2611 with areas to keep an eye on at the 1.2755 38.2 fib, 1.2709 and 1.2681 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.2903 and 1.2978

If we make new highs without the correction….follow price with your fib to get the adjusted trading zone for the week.

BIG GAP this morning, so look for a GAP trade.

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5) GBP JPY on the 4 hour chart:

Currently I have an Earth and Sky long zone between 138.55 and 137.09 with areas to keep an eye on at the 139.24 and 139.10 and 138.73/63 support areas where after I will re look to long this pair again.

Possible counter shorts at 141.47 and 143.16 areas.

If we make new highs without the correction….follow price with your fib to get the adjusted trading zone for the week.

BIG GAP this morning, so look for a GAP trade.

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6) Aussie Dollar on the 4 hour chart:

Sitting on my hands for now. Looks like we might be ranging between the 200 EMA`s at 0.0.7581 and 0.7546 levels

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7) Aussie JPY on the 4 hour chart:

Keeping an eye on the roadblock starting at 87.30 and 83.94 and 84.31 this morning for possible short set ups.

BIG GAP this morning, so look for a GAP trade.

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8) Dollar JPY on the 4 hour chart:

Keeping an eye on the roadblock starting at 110.81 to 111.25 his morning for possible short set ups.

HOWEVER:

BIG GAP this morning, so look for a GAP trade even before we get to the above levels that can set up.

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9) Dollar CAD on the 4 hour chart:

Currently I have an Earth and Sky long zone between 1.3393 and 1.3327 with areas to keep an eye on at the 1.3424 and 1.3410 and 1.3360 support areas where after I will re look to long this pair again.

Possible counter shorts from 1.3525 and 1.3586 levels.

If we make new highs without the correction….follow price with your fib to get the adjusted trading zone for the week.

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10) Dollar Index on the 4 hour chart :

Currently I have an Earth and Sky short zone between 99.69 and 100.12 with areas to keep an eye on at the 99.65 and 99.91 and 99.98 resistance areas where after I will re look to short this index again.

Possible counter longs from 98.83 and 98.37

If we make new lows without the correction….follow price with your fib to get the adjusted trading zone for the week.

BIG GAP this morning, so look for a GAP trade.

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I will be back tomorrow morning with a comprehensive Earth and Sky analysis.  

Regards

Pierre

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