Learn Forex – Professional Forex Trader, Marc Walton offers his tips & advice for the forex week ahead. Many traders struggle during the ranging forex markets of the summer months but I have had decent results, so see if you can learn these forex methods. There are simple tricks & often the trades have great risk reward ratios. Here is Marc’s forex analysis for the week ahead, taken from the forexmentorpro site he runs with Dean Saunders.
One of the great things about being a forex analyst is that if you get something wrong, nobody dies. I was convinced on Friday that we would have major volatility on the Euro because of the bank stress tests & what happened? Nothing. Nada. If I were a surgeon the patient would have died 
Instead I had the day off so it wasn’t a great loss.
So whats the plan today maestro? I hear you ask.
I will still be wary with all things Euro! The ECB were very sneaky releasing the news just as European & London markets closed & the weekend has been spent with the experts questioning the validity of the tests. It was obvious that the ECB wouldn’t devise something that was not going to have a favourable outcome, so still be wary of volatility both at market & London open.
A lot of pairs are now ranging, ie price is bouncing between an upper & lower area & this could be the pattern for the next few weeks, BUT these markets are not so difficult to trade & I usually find them to be very profitable.
As I show you in todays video, some of the pairs have given dozens of profitable trades, some with no losers. The best way I find to trade these kind of markets is from the 4 hour charts & possibly as low as 1 hour.
News
Tomorrow is a strange day as far as scheduled announcements are concerned, Forex factory shows only 3 for the entire day BUT 2 are possibly major market movers. There is big Aud & USA news so be extra careful around those times (check your calendars). As the week progresses we have more, important announcements, and they can often cause more volatility than normal, when things are generally going sideways.
| M1 | Now more than ever you need to use the emas on different time frames to keep you out of potential losing trades, see the section at the bottom of this page http://forexmentorpro.com/members/edu-m1m2.phpLook around London open. |
| Lmt
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Gave a few reasonable trades on 4 hour charts towards the back end of last week, I would leave the daily for now BUT the 4 hour is more sensitive and could start to give us some trades again. |
| Gbp/$ | As I explain in the video we are currently “range bound” between 1.5250 & 1.5450 & the Weekly trend line & 55ema are just above at 1.5525 so these are the important areas for me to consider bounces off, in the coming week.If you wish to long this pair then a pullback to 1.5250 would the main area I will consider. If it breaks up & CLOSES above 1.5525 then a pullback afterwards would be our standard M2 method.Be careful with the Gbp, there has been a fair amount of positive UK news in the last few weeks and this could go on a run & leave the Euro behind. |
| Euro/$ | Fridays news had very little effect, but the “experts” & commentators have spent the week-end opining that although most of the banks passed the test, the validity of the test itself is now being questioned.Was it strongly applied etc so we could still have some “aftershocks” either at market open or in the London session. There is no other Euro scheduled news tomorrow so this could rumble on all day.Another range bound pair. So until something breaks consider longs at 1.2800 & shorts at 1.3000. If either of these breaks, wait for a clear break & close, followed by a pullback. |
| Chf/$ | If the Euro bounces back down then the Chf should go up. Spent all last week bouncing between 1.0550 & 1.0400 – take a look at the 4 hour charts, there were approximately 20 opportunities to enter last week & NO LOSERS!. Same areas again until something breaks. |
| $/Yen | Not Sure/neutral. We are in a clear daily down trend but price has bounced back off 87.00 & there is macd divergence on the daily which suggests an upwards movement at least short term.Last week I was looking for shorts at 88.00, this still looks interesting BUT for reasons I just mentioned I would be wary tomorrow. If it gets up near 90.00 later in the week, I would definitely be considering a short.Since doing the video I also noticed a possible daily triangle forming – I will report in more detail tomorrow. |
| Aud/$ | MAJOR news at 02.30 London time a few hours after the markets open. WAIT until the news is out & the dust has settled before trading this pair.Detailed analysis in the video. Price was range bound but broke above the resistance level of 0.8850 on Thursday & stayed above. Standard forex theory is that resistance now becomes support so consider longs if price gets there tomorrow.As long as the news is not hugely better than expected then the logical area for price to struggle at & possibly bounce back down is 0.900/9020 which is the psychological level/78.6% daily fib & previous support & resistance ie multiple reasons. |
| Cad | Up & Down like a yo –yo not a pair I trade much, nor like, but price broke back down below 1.0400 and therefore consider pull backs to there for shorts. If it does start to fall again then everyone will be expecting price to reach 1:1 once more |
| Euro/Cad | Leaving alone |
| Euro/Yen | Possible 5000+ pip triangle break out! We have had a lot of success with triangle break outs this year, but to be honest I have never traded one from a monthly chart & this could be a way off, but have a look at the video. Its there!Another range bound pair. Trend followers who shorted at 113.40 in recent weeks will have had approx 10 winning trades & no losers! Price is on its way back there at the moment so consider again tomorrow.Counter trend traders will consider a long at 112.00. If price breaks either areas then standard M2 break out and pullback method. |
| Aud/jpy | Starting to look bullish on the daily chart & last weeks weekly candle is a “bullish engulfing candle” which definitely suggests a move up here.80.00 will be interesting to short, but risky. Daily 50% fib, lots of daily & weekly emas, psych level etc ie multiple reasons. Pullback to 76.00 would be good area to consider a long later in the week |
| Euro/Gbp
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Only looking to short. 0.8380/8400/ still major area for me, consider a pullback to 0.8380 but may only get to 0.8320 if it heads down. |
| Best of Luck, Marc |
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Quality know-how! I have been looking for some thing similar to this for a time today. With thanks!