Good morning everyone.

What’s up…..what’s down this morning ?

Well, currently I am in a short position.

I took a short on the NZD/USD from the roadblock we had at the daily 200 EMA at 0.7188 and the 4 hour 200 EMA at 0.7196 area.

My original stop was just above the daily 55 EMA – 26 pips (Remember I always say when you take a trade – you need to try and have something between your entry and stop that it can form a barrier  – in this case it was the 4 hour 200 EMA and daily 55 EMA that needed to break first before my stop will be triggered)

and my first roadblock for possible profit take I can see will be at the daily 55 EMA and weekly main pivot at 0.7143 that would give me 45 pips for this short.

My plan is to……. :

Move my stop to just under the entry point so that is now a free ride.

 

I need to look for the roadblock areas.

 

The first one I have is at the weekly main pivot and daily 55 EMA at 0.7143 area. If price finds support here there is a danger that it might re visit the 200 EMA`S that will kick out my trade for a break even trade – so I will keep my eyes on this level.

 

If price find solid support then I will pull my short for a 45 pip profit and re look to short again from the 200 EMA`S

 

or

 

if price breaks the support roadblock I will bring my stop in more and let the trade run as price can then go visit the next roadblock area I have close to the psychological level at 0.7100.

 

As they say – plan the trade, trade the plan !!

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1) `Red Flag News` that can make you lose your pants if you are not careful. 💡

You can use the following web site for `SCHEDULED NEWS` for the week @ http://www.dailyfx.com/calendar

Don`t take any trades just before `Red Flag News` If you are already in a trade, protect your entry. I don’t want to meet up with you at Little Beach, Maui, Hawaii. Did you know this is a nudist beach?

For reference if you don’t want to believe me, have a look at the 4th of April 2013 at all the JPY pairs what happened with price after `Red Flag News` came out. ALWAYS TRADE WITH A STOP! 

Still don’t believe me? Then you must be new to Forex Trading

Have a look at what the Swiss did to the market on the 15th of January 2015!!

You would have lost the shirt on your back, your house, your car, your personality and your virginity for a 2nd time if you didn’t have a stop in place!!! 👿

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2) Where is the `Forum Hang out Spot` that everyone is talking about?

On the top of this main page, go to the  FORUM TAB and click on it…….once in there, look for `MAIN FORUM AND CURRENT WEEKS TRADES TAB` and click on it………Once in there look for `Pierre`s Earth and Sky Trading week `and click on it……..once in there, look for the current week`s thread tab and click on it………..easy as pips! 😉

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3) This week`s Analysis:

This is my current `Earth and Sky Trading Zones` – Please take note of the time frames I am looking at. ❗

Sometimes I will refer to `The mother in law` in my video`s or in my write up. The mother in law represents the 200 EMA (the pink line) on that specific time frame.

If you new to the `Earth and Sky` method, please make sure you download your free e-book.

Go to the `Forex Education Tab` here in the main blog and look for the `Earth and Sky Trading System` where you will find helpful videos using this system and some Indi`s I use.

Remember to have a look at some of the other methods we teach here at Forex Mentor Pro too.

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Let’s have a look what`s cooking in the FOREX kitchen this morning:

1) Euro Dollar on the DAILY chart:

Notes:

Currently sitting JUST UNDER the cluster of EMA`S at 1.1790.

The Head and Shoulder pattern I showed you on Friday is still in play……also looks like we trapped in a triangle on the daily too.

If we break the triangle to the downside I will look to short to the  neckline at 1.1700 or the MS1 pivot at 1.1656 where after I will re look for support to long again if it holds as support…remember we still have the Head and Shoulder pattern in play so be careful.

The neckline for the head and shoulder pattern is at 1.1700  and 1.1656 so that need to break first if we want to trade the pattern to the upside to at least the daily 200 EMA at 1.1435..

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2) Euro JPY on the DAILY chart:

*Last week we closed only 8 pips higher than the opening but the trend is still up so we couldn’t fib the 4 hour for the zone as it was to flat – we had to fib the daily chart to get the long  zone.*

Currently I have an Earth and Sky long zone between 131.85 and 130.64 with areas to keep an eye on at the 131.83 and 131.27 and 130.74 support areas where after I will re look to long this pair again.

Possible counter shorts at 133.12 and 134.02 and 134.61 resistance levels.( Weekly pivot areas)

Notes:

Wait for confirmation before you just jump in with a long.

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3) Euro GBP on the DAILY chart :

Notes:

The 4 hour direction Indi is all mixed up……the daily direction Indi is also all mixed up with the directions.

I will however look for possible short set ups from the 4 hour and daily 55 EMA`S at 0.8949 and at 0.9000 where we had previous resistance

and possible long set ups from the daily 200 EMA at 0.8813 level.

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 4) GBP Dollar on the 4 hour  chart:

Currently I have an Earth and Sky long zone between 1.3210 and 1.3144 with areas to keep an eye on at the 38.2 fib at 1.3241 and 1.3213 support areas where after I will re look to long this pair again.

Possible counter shorts at 1.3341 and 1.3396 resistance levels.

Notes:

Currently we sitting on the 1st roadblock area at the 38.2 fib area at 1.3241 so I will be keeping an eye on possible support followed by a long set up – if we break to the downside for some reason I will re look at the 200 EMA at 1.3210 and the 55 EMA at 1.3179 for support followed by a long set up again.

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5) GBP JPY on the DAILY chart:

Currently I have an Earth and Sky long zone between 147.02 and 144.18 with areas to keep an eye on at the 38.2 fib at 148.40 and 148.00 and 147.50  and 146.77 support areas where after I will re look to long this pair again.

Possible counter shorts 149.55 and 150..42 and 151.59 resistance levels (weekly pivots)

Notes:

While the daily 200 EMA at 144.18 holds my bias will be to look for long set ups. LOOKS LIKE WE HAVE A TRIANGLE TO – so with the bias to long…..wait for triangle to break to the upside first.

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6) Aussie Dollar on the DAILY chart:

Notes:

The 4 hour direction Indi is all mixed up……the daily direction Indi is also all mixed up with the directions.

My plan is to re look for longs from the support level at the daily 200 EMA at 0.7740 or the MS1 pivot at 0.7713

and possible shorts again from the daily 55 EMA at 0.7873 or 0.7900/19 area where we have the main monthly pivot point.

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7) Aussie JPY on the DAILY and WEEKLY chart:

Notes:

I don’t like this pair at the moment. Price doesn’t respect the EMA`s anymore. and breaks the cluster EMA`S at 87.86 up and down up and down !!

Will re look to short from the MR1 pivot at 90.00 and long from the bull trend line we have on the weekly chart at 87.68.

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8) Dollar JPY on the DAILY chart:

*Last week we closed min 68 pips lower than the opening but the trend is still up so we couldn’t fib the 4 hour for the zone – we had to fib the daily chart to get the long  zone.*

Currently I have an Earth and Sky long zone between  110.38 and 108.85 with areas to keep an eye on the 38.2 fib at 111.61/38/15 and 111.00 support areas where after I will look to long this pair.

Possible counter shorts at 112.57 and 113.27 and 113.44 resistance levels.

Notes:

We have loads of EMA`S at the 38.2 fib area with my last line in the sand at 111.00.

While this level at 111.00 holds my bias will be to look for long set ups !

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9) Dollar CAD on the DAILY chart:

Notes:

Currently sitting on the cluster of EMA`S at 1.2493

The inverse Head and Shoulder pattern I showed you on Friday is still in play……also looks like we trapped in a triangle on the daily too.

If we break the triangle to the downside I will look to short to the  MS1 pivot at 1.2172 where after I will re look for support to long again.

The neckline for the inverse head and shoulder pattern is at 1.2600 so that need to break first if we want to trade the pattern to the upside.

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10) Dollar Index on the DAILY chart :

Currently sitting on the cluster of EMA`S at 93.23

The inverse Head and Shoulder pattern I showed you on Friday is still in play……also looks like we trapped in a ascending triangle on the daily too.

The neckline for the inverse head and shoulder pattern is at 94.00 so that need to break first if we want to trade the pattern to the upside.

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11) Euro/Aussie on the 4 hour chart:

Currently I have an Earth and Sky long zone between  1.5015 and 1.4902 with areas to keep an eye on 1.5000 and 1.4972 and 1.4900 support areas where after I will look to long this pair.

Possible counter shorts at 1.5159 and 1.5241 resistance levels.

Notes:

If the 1.4900 levels doesn’t hold for some reason if we do get down there…..be careful as we will go visit the daily 200 EMA currently at 1.4767 where I will re look for support and then to long again.

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I made a 15 min movie clip this morning for you and when I did the editing with Camtasia 9 the program froze again !! This will be now the third time this happens to me so I do apologize – so please look out for the web recording that will be available later today where I will re-look at my analysis above.

Now……….let me go walk the dog to cool down !! 🙂

Regards

Pierre

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