Good morning everyone.

How was your weekend? Mine was very lekke…..thank you for asking. 🙂

Big week ahead for us. Draghi’s (ECB president) news conference on Thursday will be key for the Euro & the UK election result Friday morning. So once again we have to pay close attention to the news this week.

The Spaghetti indicator:

All the currencies are very flat this morning. I will be keeping an eye on this Indi to red flag the currencies that do get overbought or oversold this week.

 

 

  • If you want to add the overbought and oversold areas to this Indi…..right click on the RS all Indi……then go to the RS All properties…….here we go to the levels tab…..then add the 8 and 13 and min 8 and min 13 line and click on OK.
  • Remember then to save a new template.

……………………………………………………………….

Let’s have a quick Monday morning look at what is cooking in the Forex kitchen this morning.

……………………………………………………………….

1) Euro Dollar on the 4 hour chart:

Currently I have an Earth and Sky long zone between 1.1200 and 1.1156 with areas to keep an eye on at the 1.1204 and 1.1166 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.1341 levels.

Take care at that 55 EMA and weekly pivot. WE HIGHLY OVERBOUGHT AND WE HAVE MACD DIVERGENCE ON THE DAILY SO A CORRECTION CAN BE ON ITS WAY.

If the WS1 pivot breaks to the downside be careful as we can go visit the 200 EMA and WS2 pivot at 1.1044.

……………………………………………………………….

2) Euro JPY on the 4 hour chart:

Leaving this one alone for now. Looks like we trapped in a triangle on the daily chart.

Like the Euro/Dollar we highly overbought……so be careful as we might break to the downside and go visit 123.20 and 122.64 and 122.00.

……………………………………………………………….

3) Euro GBP on the 4 hour chart :

Currently I have an Earth and Sky long zone between 0.8712 and 0.8683 with areas to keep an eye on at the 0.8700 and 0.8694 and 0.8690 areas where after I will re look to long this pair again.

Possible counter shorts at 0.8768 and 0.8803 levels

Take care at that 55 EMA and weekly pivot. WE HIGHLY OVERBOUGHT AND WE HAVE MACD DIVERGENCE ON THE DAILY SO A CORRECTION CAN BE ON ITS WAY.

If the WS1 pivot breaks to the downside be careful as we can go visit the 200 EMA at 0.8600 area where I will re look to long.

……………………………………………………………….

 4) GBP Dollar on the DAILY chart:

Sitting on my hands for now. Looks like we might be trapped between the monthly main pivot at 1.2904 and MS1 pivot 1.2754. Possible trades between these two levels but be careful but be careful with the GBP this week..

……………………………………………………………….

5) GBP JPY on the DAILY chart:

Sitting on my hands for now. Looks like we might be trapped between the monthly main pivot at 144.09 and daily 200 EMA at 141.75. Possible trades between these two levels but be careful with the GBP this week..

………………………………………………………………

6) Aussie Dollar on the DAILY chart:

The 4 hour direction is mixed …..so that is why I fib the daily chart to get an Earth and Sky short zone for the week.

Currently I have an Earth and Sky short zone between 0.7446 and 0.7501 with areas to keep an eye on at the 0.7476 and 0.7500 areas where after I will re look to short this pair again.

Possible counter longs at 0.7374 and 0.7319 levels.

………………………………………………………………

7) Aussie JPY on the 4 hour  chart:

Currently I have an Earth and Sky short zone between 82.44 and 82.70 with areas to keep an eye on at the 82.65 and 82.71 areas where after I will re look to short this pair again.

Possible counter longs at 81.65 and 81.25

If we break the WR1 pivot to the upside this week….be careful as we can jump to last week’s high at 82.97 where I will re look to short…….and if that breaks to the upside for some reason….the 200 EMA at 83.22 will be my next short area.

REMEMBER THE MAIN TREND IS DOWN.

………………………………………………………………

8) Dollar JPY on the 4 hour chart:

Currently I have an Earth and Sky short zone between 111.04 and 111.39 with areas to keep an eye on at the 111.22 and 111.37 areas where after I will re look to short this pair again.

Possible counter longs at 109.99

………………………………………………………………

9) Dollar CAD on the DAILY chart:

Sitting on my hands for now. Looks like we might be trapped between the monthly main pivot at 1.3557 and daily 200 EMA at 1.3360. Possible trades between these two levels but be careful.

………………………………………………………………

10) Dollar Index on the 4 hour chart :

Currently I have an Earth and Sky short zone between 97.19 and 97.47 with areas to keep an eye on at the 97.23 and 97.43 resistance areas where after I will re look to short this index again.

Possible counter longs at 96.31

………………………………………………………………

I will be back tomorrow morning with a comprehensive Earth and Sky analysis for the rest of the week.

Regards

Pierre