Good morning everyone.

What’s up and whets down this morning?

Well if I look at the Euro/Dollar daily chart we can spot that the Bollinger bands are making tweezers. This usually means that the volume/momentum is slowing down considerably so we need to keep an eye on that.

On Friday DURING THE webinar I showed you that the Dollar Index was hitting a key resistance area at the daily 38.2 fib and monthly main pivot point at 99.66 and as a bonus we had loads of EMA`S there too and that a possible short was setting up. Price did find the resistance I expected and started a bearish move currently 50 odd pips up.

This road block at the 38.2 fib on the daily chart will be a key area for this week again and while it holds…..the Dollar might be short for the week ahead.

Let’s have a quick look at the market.

Monday morning inspiration:

The Spaghetti indicator:

All the currencies are flat this morning so I will wait for the Indi to show me later on what’s overbought and what’s oversold and then sift my focus to the charts to spot potential set ups at key road block areas.

  • 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.

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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 Dollar on the DAILY chart:

LAST WEEK WE CLOSED LOWER THAN THE OPENING SO WE CANT FIB THE 4 HOUR TO GET AN EARTH AND SKY LONG ZONE.

Currently I have an Earth and Sky long zone between 1.0792 and 1.0681 with areas to keep an eye on at the 1.0820 and 1.0810 and 1.0792 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.1004 and 1.1014

Keep an eye on the Bollinger bands….they making tweezers so volume/momentum is low.

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2) Euro JPY on the 4 hour chart:

Currently I have an Earth and Sky long zone between 123.76 and 123.37 with areas to keep an eye on at the 123.77 and 123.56 and 123.37 support areas where after I will re look to long this pair again.

Possible counter shorts at 124.55 and 125.00

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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3) Euro GBP on the DAILY chart :

The 4 hour direction indicator is all mixed up…..so that is why I had to fib the daily chart.

Currently I have an Earth and Sky short zone between 0.8448 and 0.8519 with areas to keep an eye on at the 0.8484 and 0.8500 resistance areas where after I will re look to short this pair again.

Possible counter longs at 0.8413 and 0.8344

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 4) GBP Dollar on the DAILY chart:

LAST WEEK WE CLOSED LOWER THAN THE OPENING SO WE CANT FIB THE 4 HOUR TO GET AN EARTH AND SKY LONG ZONE.

Currently I have an Earth and Sky long zone between 1.2676 and 1.2519 with areas to keep an eye on at the 38.2 fib at 1.2750 and 1.2700 support areas where after I will re look to long this pair again.

Possible counter shorts  at 1.2992 and 1.3051

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5) GBP JPY on the 4 hour  chart:

This one already pulled back past the Earth and Sky long zone in the Asian session but found support at the 55 EMA and last week’s low area at 145.92 and started the bullish move…..so by the looks of it, this 55 EMA will be key support for us this week for possible long set ups.

Possible counter trades at 148.00.

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6) Aussie Dollar on the 4 hour chart:

This one already pulled back past the Earth and Sky short zone and we currently hitting last week’s high area……so two possibilities

One we can find resistance here at last week’s high at the WR1 pivot at 0.7435 where after a short can set up or two price can break to the upside and move to the WR2 pivot where we also have a 4 hour mother in law`s dining room table waiting ( 200 EMA) where we also have other EMA`S moving down….so this can be the big level for the week.

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7) Aussie JPY on the 4 hour chart:

I don’t like this pair at the moment. Don’t like the way how price don’t respect the EMA`S plus it looks like we might be trapped in a triangle on this one too.

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8) Dollar JPY on the 4 hour chart:

Currently I have an Earth and Sky long zone between  113.39 and 112.89 with areas to keep an eye on at the 113.37 and 113.09 support areas where after I will re look to long this pair again.

Possible counter shorts  at 114.36 and 115.00.

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9) Dollar CAD on the DAILY chart:

Currently I have an Earth and Sky long zone between 1.3507 and 1.3364 with areas to keep an eye on at the 38.2 fib at 1.3575/3553 and 1.3507 support areas where after I will re look to long this pair again.

Possible counter shorts  at 1.3793 and 1.3817

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10) Dollar Index on the DAILY chart :

Currently I have an Earth and Sky short zone between 99.91 and 100.63 with areas to keep an eye on at the 38.2 fib at 99.63 and 100.00 resistance areas where after I will re look to short this index again.

Possible counter longs at 98.46 and 97.97

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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