Hope you are all well. The holiday period is over this side of the
world and my kids are starting school tomorrow morning. What a
LOOOOOOONG holiday they had, think I need a holiday now after
entertaining then for well over a month.
Couple of weeks back Marc and I mentioned that loads of pairs have rallies against the Dollar in the beginning of the year. These rallies lasted anything from 2 months to up to 5 months on some pairs. At that stage when we posted we didn’t know if this year will be the same.
By the looks of it, the Euro pairs are following the above by the book……Now the next question will be – `How long will it last?` Well it doesn’t really matter does it? We just have to trade what we see now, and now it looks long.
Truth saying for the week:
` We choose our joys and sorrows long before we experience them` K.Gabran
____________________________________________________________
`Red Flag ` News that can move the market this week:
Loads and loads this week. So be careful and trade around the important news announcements. Have a look at http://www.dailyfx.com/calendar for the dates and times the news will come out.
____________________________________________________________
Let`s have a look at some charts for the week. PLEASE TAKE NOTE OF THE TIME FRAMES!!
1) Euro Index on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Long
Potential trading zone: 105.33 to 104.53
Potential area to look for reaction: 105.44 and 105.12
Stochastic: Overbought
MACDEE Divergence: Yes
Notes: Remember that the following pairs make out the `Euro Index Basket`: The Euro/Dollar, Euro/JPY, EURO/GBP and the EURO/CHF. Use the `Euro Index` for extra confirmation and information to trade the basket pairs. If you don’t have the index on your platform………….download a demo account with Admiral Markets @ http://www.fxservice.com/
Be careful, we are way overbought with a weekly pivot waiting for price at 107.14 and a monthly 106.81. This is the MR2 – showing us that it is way overbought!
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2) Euro/USD on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 1.3210 to 1.3113
Potential area to look for reaction: 1.3248 at main weekly pivot or 1.3210. Also keep your eye on the 38.2 fib area if we don’t get a deep pullback at 1.3255.
Stochastic: Open and trending down out of an overbought area.
MACDEE Divergence: Yes.
Notes: This pair is positive correlated (moving in the same direction) as the Dollar Index. Be careful to take trades on both pairs at the same time!
Wait for price to come to you. Like the Euro index we are hitting a monthly pivot at 1.3375 with today’s candle (and today is still long) possible railway track candle formation. So keep your eye on this candle close today.
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3) Euro/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long Potential trading zone: 116.79 to 115.13
Potential area to look for reaction: 117.64 at main weekly pivot, 116.40
Stochastic: Open and trending down out of an overbought area.
MACDEE Divergence: Yes we had, and it’s in play now with price dropping.
Notes: This pair is positive correlated (moving in the same direction) as the Euro/Dollar and Euro/JPY pairs. Be careful to take trades on both pairs at the same time! __________________________________________________________________
4) Euro/GBP on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 0.8214 to 0.8158
Potential area to look for reaction: 0.8224 and 0.8200
Stochastic: In an overbought area.
MACDEE Divergence: Yes
Notes: Wait for price to come to you. This pair is positive correlated (moving in the same direction) as the Euro/Dollar and Euro/JPY and Euro Index pairs. Be careful to take trades on these pairs at the same time!
__________________________________________________________________
5) GBP/USD on the Daily chart:
Notes: If we look at the daily chart then price is trapped in a triangle.
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6) GBP/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 142.04 to 140.67
Potential area to look for reaction: 142.00 and 141.00
Stochastic: Trending down
MACDEE Divergence: We had and it is in play now with price dropping.
Notes: Wait for confirmation in the zone before you just jump in. We are way out from the mother in laws and you all know how I feel about here. Once in a while price needs to go visit her to keep the family peace. So be careful, we might fall past the zone.
_________________________________________________________________
7) AUD/Dollar on the Daily chart:
Notes: Still keeping my eyes on the 1.0600 level as a top and 1.0200 as a bottom area. Price touched the 1.0600 level once again last week with price burning fingers AGAIN. Be careful, sometimes price can knock at this door and once it opens, price can shoot up.
_________________________________________________________________
8) AUD/JPY on the 4hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 92.91 to 92.05
Potential area to look for reaction: 93.33 and 92.61
Stochastic: 0Open and trending down.
MACDEE Divergence: Yes we had and it’s now in play with price dropping.
Notes: This pair is positive correlated (moving in the same direction) as the AUD/USD pair. Be careful to take trades on both pairs at the same time!
_________________________________________________________________
9) USD/CHF on the Daily chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 0.9229 to 0.9306
Potential area to look for reaction: 0.9248 and 0.9300 levels.
Stochastic: No man’s land
MACDEE Divergence: No.
Notes: Remember this pair is negative correlated with the Euro/Dollar and Euro Index, with them hitting overbought levels with a possible pullback, can make that this pair can jump the zone to the mother in law at 0.9343
_________________________________________________________________
10) USD/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 88.23 to 87.52
Potential area to look for reaction: 88.00
Stochastic: Open and trending down
MACDEE Divergence: Yes, we had and it is in play now with price dropping. As mentioned before….we way out from the mother in laws, so confirmation is key before you just jump in to long
Notes: As mentioned before….we way out from the mother in laws, so confirmation is key before you just jump in to long
_________________________________________________________________
11) USD/CAD on the Daily chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 0.9935 to 0.9995
Potential area to look for reaction: Loads of roadblocks at the 38.2 fib area at 0.9900 areas, 0.9935.
Stochastic: Oversold area
MACDEE Divergence: Double bottom.
Notes: Price is currently sitting on the monthly pivot at 0.9840 with price forming a possible double bottom.
______________________________________________________________
12) USD Index on the 4 hour chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 80.02 to 80.35
Potential area to look for reaction: 79.89 we have loads happening
Stochastic: Coming out of an oversold area.
MACDEE Divergence: No.
Notes: Wait for price to come to you…..don’t jump the gun.
______________________________________________________________
Please remember we are NOT a “tipping service.” What we aim to teach you here at fxmentorpro is how to look for trades for yourself using different methods.
Have a good one mates………be careful this week!!!
Couple of weeks back Marc and I mentioned that loads of pairs have rallies against the Dollar in the beginning of the year. These rallies lasted anything from 2 months to up to 5 months on some pairs. At that stage when we posted we didn’t know if this year will be the same.
By the looks of it, the Euro pairs are following the above by the book……Now the next question will be – `How long will it last?` Well it doesn’t really matter does it? We just have to trade what we see now, and now it looks long.
Truth saying for the week:
` We choose our joys and sorrows long before we experience them` K.Gabran
____________________________________________________________
`Red Flag ` News that can move the market this week:
Loads and loads this week. So be careful and trade around the important news announcements. Have a look at http://www.dailyfx.com/calendar for the dates and times the news will come out.
____________________________________________________________
Let`s have a look at some charts for the week. PLEASE TAKE NOTE OF THE TIME FRAMES!!
1) Euro Index on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Long
Potential trading zone: 105.33 to 104.53
Potential area to look for reaction: 105.44 and 105.12
Stochastic: Overbought
MACDEE Divergence: Yes
Notes: Remember that the following pairs make out the `Euro Index Basket`: The Euro/Dollar, Euro/JPY, EURO/GBP and the EURO/CHF. Use the `Euro Index` for extra confirmation and information to trade the basket pairs. If you don’t have the index on your platform………….download a demo account with Admiral Markets @ http://www.fxservice.com/
Be careful, we are way overbought with a weekly pivot waiting for price at 107.14 and a monthly 106.81. This is the MR2 – showing us that it is way overbought!
__________________________________________________________________
2) Euro/USD on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 1.3210 to 1.3113
Potential area to look for reaction: 1.3248 at main weekly pivot or 1.3210. Also keep your eye on the 38.2 fib area if we don’t get a deep pullback at 1.3255.
Stochastic: Open and trending down out of an overbought area.
MACDEE Divergence: Yes.
Notes: This pair is positive correlated (moving in the same direction) as the Dollar Index. Be careful to take trades on both pairs at the same time!
Wait for price to come to you. Like the Euro index we are hitting a monthly pivot at 1.3375 with today’s candle (and today is still long) possible railway track candle formation. So keep your eye on this candle close today.
__________________________________________________________________
3) Euro/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long Potential trading zone: 116.79 to 115.13
Potential area to look for reaction: 117.64 at main weekly pivot, 116.40
Stochastic: Open and trending down out of an overbought area.
MACDEE Divergence: Yes we had, and it’s in play now with price dropping.
Notes: This pair is positive correlated (moving in the same direction) as the Euro/Dollar and Euro/JPY pairs. Be careful to take trades on both pairs at the same time! __________________________________________________________________
4) Euro/GBP on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 0.8214 to 0.8158
Potential area to look for reaction: 0.8224 and 0.8200
Stochastic: In an overbought area.
MACDEE Divergence: Yes
Notes: Wait for price to come to you. This pair is positive correlated (moving in the same direction) as the Euro/Dollar and Euro/JPY and Euro Index pairs. Be careful to take trades on these pairs at the same time!
__________________________________________________________________
5) GBP/USD on the Daily chart:
Notes: If we look at the daily chart then price is trapped in a triangle.
_________________________________________________________________
6) GBP/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 142.04 to 140.67
Potential area to look for reaction: 142.00 and 141.00
Stochastic: Trending down
MACDEE Divergence: We had and it is in play now with price dropping.
Notes: Wait for confirmation in the zone before you just jump in. We are way out from the mother in laws and you all know how I feel about here. Once in a while price needs to go visit her to keep the family peace. So be careful, we might fall past the zone.
_________________________________________________________________
7) AUD/Dollar on the Daily chart:
Notes: Still keeping my eyes on the 1.0600 level as a top and 1.0200 as a bottom area. Price touched the 1.0600 level once again last week with price burning fingers AGAIN. Be careful, sometimes price can knock at this door and once it opens, price can shoot up.
_________________________________________________________________
8) AUD/JPY on the 4hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 92.91 to 92.05
Potential area to look for reaction: 93.33 and 92.61
Stochastic: 0Open and trending down.
MACDEE Divergence: Yes we had and it’s now in play with price dropping.
Notes: This pair is positive correlated (moving in the same direction) as the AUD/USD pair. Be careful to take trades on both pairs at the same time!
_________________________________________________________________
9) USD/CHF on the Daily chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 0.9229 to 0.9306
Potential area to look for reaction: 0.9248 and 0.9300 levels.
Stochastic: No man’s land
MACDEE Divergence: No.
Notes: Remember this pair is negative correlated with the Euro/Dollar and Euro Index, with them hitting overbought levels with a possible pullback, can make that this pair can jump the zone to the mother in law at 0.9343
_________________________________________________________________
10) USD/JPY on the 4 hour chart:
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: 88.23 to 87.52
Potential area to look for reaction: 88.00
Stochastic: Open and trending down
MACDEE Divergence: Yes, we had and it is in play now with price dropping. As mentioned before….we way out from the mother in laws, so confirmation is key before you just jump in to long
Notes: As mentioned before….we way out from the mother in laws, so confirmation is key before you just jump in to long
_________________________________________________________________
11) USD/CAD on the Daily chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 0.9935 to 0.9995
Potential area to look for reaction: Loads of roadblocks at the 38.2 fib area at 0.9900 areas, 0.9935.
Stochastic: Oversold area
MACDEE Divergence: Double bottom.
Notes: Price is currently sitting on the monthly pivot at 0.9840 with price forming a possible double bottom.
______________________________________________________________
12) USD Index on the 4 hour chart:
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: 80.02 to 80.35
Potential area to look for reaction: 79.89 we have loads happening
Stochastic: Coming out of an oversold area.
MACDEE Divergence: No.
Notes: Wait for price to come to you…..don’t jump the gun.
______________________________________________________________
Please remember we are NOT a “tipping service.” What we aim to teach you here at fxmentorpro is how to look for trades for yourself using different methods.
Have a good one mates………be careful this week!!!