Good morning everyone.
I hope you all had a stunning, super, cool weekend.
With some of the moves we had after last week’s FOMC news price broke important levels last week so take note of my charts this morning as I had to fib. loads of daily chart this morning to get the Earth and Sky trading zones.
Spaghetti indicator:
The spaghetti indicator is telling us that the Euro is overbought……..so we need to keep an eye on the Euros for possible trade set ups for the early part of the week.
Most currencies are flat but I will be keeping an eye on the GBP`s as it is getting closer to an overbought area.
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Let’s have a quick Monday morning look at what is cooking in the Forex kitchen this morning.
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1) Euro Index on the DAILY chart:
Last week we closed min 65 pips lower than the opening of last week so price was trending down, so we have to fib the daily chart this morning to get a long zone.
Currently I have an Earth and Sky long zone between 99.63 and 98.92 with areas to keep an eye on at the 38.2 fib and some EMA`S between 99.97 and 99.78 as a support area where I will re look to go long again.
Possible counter shorts at 101.05.
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2) Euro Dollar on the 4 hour chart:
Currently I have an Earth and Sky long zone between 1.0694 and 1.0648 with areas to keep an eye on at 1.0675 and 1.0648 and if that breaks at 1.0635 for support areas where after I will re look to long this pair
Possible counter shorts at 1.0800 areas.
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3) Euro JPY on the DAILY chart:
Last week we closed min 162 pips lower than the opening of last week so price was trending down, so we have to fib the daily chart this morning to get a long zone.
Currently I have an Earth and Sky long zone between 120.56 and 119.40 with areas to keep an eye on at the 38.2 fib at 121.11 and 120.92 for a support area where after I will re look to long this pair.
Possible counter shorts at 121.95 and 122.89 areas.
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4) Euro GBP on the DAILY chart :
Last week we closed min 109 pips lower than the opening of last week so price was trending down, so we have to fib the daily chart this morning to get a long zone.
Currently I have an Earth and Sky long zone between 0.8596 and 0.8500 with areas to keep an eye on at the 38.2 fib at 0.8641/19/11 areas for a support area where after I will re look to long this pair.
Possible counter shorts from 0.8769 and 0.8787 areas.
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5) GBP Dollar on the DAILY chart:
Last week we closed PLUS 218 pips higher than the opening of last week so price was trending up, so we have to fib the daily chart this morning to get a short zone.
Currently I have an Earth and Sky short zone between 1.2407 and 1.2555 with areas to keep an eye on at 1.2407 and 1.2490 for resistance area where after I will re look to short this pair.
We have a roadblock on our way down as we have a 200 and 55 EMA that can give support so take note…..otherwise we might be better for the 1.2339 area to break to the downside first before we look for shorts.
Possible counter longs from 1.2110 areas.
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6) GBP JPY on the DAILY chart:
Currently I have an Earth and Sky short zone between 141.28 and 142.71 with areas to keep an eye on at the 38.2 fib at 140.61 for resistance area where after I will re look to short this pair.
Possible counter longs from 138.44 areas.
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7) Aussie Dollar on the 4 hour chart:
Currently I have an Earth and Sky long between 0.7633 and 0.7585 with areas to keep an eye on at the 38.2 fib at 0.7657 and 0.7630 and 0.7609 for support area where after I will re look to long this pair.
Possible counter shorts from 0.7750 and 0.77.72 areas.
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8) Aussie JPY on the 4 hour and daily chart:
Looks like we once again in a triangle on the daily…..and on the 4 hour chart we might have support at the mother in law 200 EMA within the triangle at 86.57.
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9) Dollar JPY on the 4 hour chart:
Last week we had a big drop and we broke loads of EMA`S to the downside…….the daily is till long and the 4 hour short. I will fib the 4 hour this week as we have loads of EMA`S that needs to break first to the upside again before I will look to long……..so while they hold my bias will be to look for shorts.
Currently I have an Earth and Sky short zone between 113.87 and 114.54 with areas to keep an eye on at the 38.2 fib at 113.55 and at 113.87 areas for resistance where after I will re look to short this pair.
Possible counter longs from 111.79 areas.
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10) Dollar CAD on the DAILY chart:
Last week we closed min 127 pips lower than the opening of last week so price was trending down, so we have to fib the daily chart this morning to get a long zone.
Currently I have an Earth and Sky long zone between 1.3257 and 1.3119 with areas to keep an eye on at the 38.2 fib at 1.332 and 1.3292 and 1.3276 and 1.3227 for support areas where after I will re look to long this pair.
Possible counter shorts from 1.3460 areas.
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11) Dollar Index on the 4 hour chart :
Last week we had a big drop and we broke loads of EMA`S to the downside…….the daily is till long and the 4 hour short. I will fib the 4 hour this week as we have loads of EMA`S that needs to break first to the upside again before I will look to long……..so while they hold my bias will be to look for shorts.
Currently I have an Earth and Sky short zone between 100.93 and 101 .36 with areas to keep an eye on at 100.99 and 101.13 areas for resistance where after I will re look to short this pair.
Possible counter longs from 99.69 and 99.48 areas.
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Well that’s that for my Monday Morning Quick overview.
I will be back tomorrow morning with a comprehensive Earth and Sky analysis for the rest of the week.
Regards
Pierre
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