Hi, Strange few weeks, BUT there are still profitable forex trades out there. Whilst the general $USA weakness of last week means I am still not sure with the Euro & the Gbp, there are lots of potential technical moves developing, especially triangle break outs, head & shoulders pattern and a few flag pattern break outs that could give over 2000 pips!!
If you are not familiar with these kinds of techniques then take a look in the forex strategies section where there are short videos explaining each of them, you can find them in this section; http://www.forexmentorpro.com/members/edu-marc.php
The Week Ahead
There is a bank holiday in Japan today, consequently there is likely to be much less liquidity, so be wary of all things Yen related. Monday is a fairly light news day, but big news announcements as the week progresses. Lot of big Gbp news & The Euro culminates in the banking ”stress test” results on Friday, which could cause huge movements in either direction.
Be careful at market open as there is always the chance of “gaps” in price. The last few weeks there have been very few, BUT don’t be lulled into a false sense of security!
| M1 | Worked well on lots of pairs last week. Hasn’t been great in recent weeks on a Monday due to too much Asian range movement. Look around London open. |
| Lmt | Gave a few reasonable trades on 4 hour charts towards the back end of last week, Last weeks big moves could start to give us some trades again. Important that you follow the LMT Advanced Rules which can be found here: http://forexmentorpro.com/members/edu-lmt.php |
| Gbp/$ | I am undecided on this pair. Possible 1000 pip flag pattern break later in the week. For tomorrow all I can do is tell you areas that are likely to be important. Its then your call if you choose to long or short.I realise this is confusing if you are new, but I am still interested to short around 1.5550 area as I explain in last weeks & todays video. This could just be a bounce though so move your stops to entry after 20/30 pips profit.
Areas for likely reaction/areas of interest Those considering shorts: 1.5540 as above Break & close below 1.5200 followed by pullback (standard M2) Break & close below trend line around 1.5050 If on the other hand you feel that we are now in an uptrend Then look for clues to long around, 1.5050, 1.5200 & 1.5250 Sorry I can not be more specific, but remember: IF IN DOUBT. STAY OUT Wait until things become clearer. Its more important that you do not lose. |
| Euro/$ | Undecided, but possible 1500 pip flag pattern later in the week!I said on Thursday (& explained why in the video) to look for shorts at 1.3000 – “he must be mad,” they cried – it worked for 70+ pips :)
Same as the Gbp, these are just areas where price is likely to struggle or react: Those thinking of shorting: 1.3000, 1.3100 & 1.3300 as explained in the video. The flag pattern lower line will be around 1.2500 later in the week, I will keep my eye on it for you. Those looking to long 1.2800 whole number and previous support so consider there & below there 1.2600 was previous MAJOR support & resistance. |
| Chf/$ | If the Euro bounces back down then the Chf should go up. Chf bounced off a new low on Friday. Could just have been a “dead cat bounce”. Only looking at shorts. 1.0600, 1.0700 & 1.0800 are the areas to look for clues. |
| $/Yen | Last weeks triangle break out worked to perfection, unfortunately as I was in “ultra cautious” mode, I didn’t take it. Japanese bank Holiday tomorrow so could be very slow. I will however be interested to short at 87.00 which is standard M2, break out/pullback. If that area breaks then 88.00 is next big line in the sandSimilar triangle break outs lining up on other Yen pairs. |
| Aud/$ | Only interested in a short. Struggled all last week around 0.8840 and again on Friday, so interested to short if it gets back there. Bouncing up from weekly 55ema at 0.8660 Consider bounces up from here (counter trend so half your stake). Break & close below 0.8650 look for standard M2 break out/pullback |
| Cad | Up & Down like a yo –yo, 1.0600 will be strong resistance/possible bounce back down, but not my favourite pair, leaving alone tomorrow. |
| Euro/Cad | 1.3900/1.4000 was very strong previous support & resistance, look for clues of a bounce back down there. |
| Euro/Yen | Only looking to short. Possible best move, except those darn Japanese Bank Holidays could kill it tomorrow J Triangle break out suggests possible 600 pip move if we can get a break down & close below 111.50, followed by a pullback. |
| Aud/jpy | Still looking to short. Pullback to 76.00 will be VERY interesting Also Head & Shoulders pattern developing, could be 1000 + pip move down, keep your eye on it for opportunities to short |
| Euro/Gbp | Only looking to short. But broke major previous resistance at 0.84020 so counter trend traders will consider longing if price pulls back there. Consider shorts if price gets to 0.8500 & definitely if it gets to 0.8650 later in the week. We have daily 200ema, weekly 55ema & daily 78.6 fib all in the same area |
| Best of Luck, Marc |
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