Afternoon team,
It's Monday and forex markets are back open again for another week.
We've been killing it inside my Inner Circle ⭕️ these last few weeks, smashing 1:3 risk reward trades, one after the other.
Manage your risk in multiples of at least 1:3 and you aren't going to go broke taking trades around strong, higher time frame support/resistance zones.
Best of probabilities to you,
Dane.
Technical Analysis
So what do we have on our plates this week?
EUR/USD
Daily:
- Higher time frame bearish trend.
- Below higher time frame support/resistance.
We haven't spoken about the Euro since new lows were forged in EUR/USD a few weeks ago. But you can see that after those lows were hit, price has since rallied straight back into resistance.
If price shows weakness here and does in fact turn back under it, fresh lows could be on the cards again.
GBP/USD
Daily:
- Higher time frame bearish trend.
- Above higher time frame support/resistance.
In last week's GBP/CAD analysis blog, I highlighted how the pair had ripped off support but was finding it hard to go any higher because GBP/USD was up against the resistance zone you can see in this chart.
Well that resistance zone is certainly goneski thanks to positive Brexit negotiations surprising the market. It's going to be interesting to see if Cable can keep rallying this week, or we return to the mean as quickly as we left.
USD/JPY
- Higher time frame bearish trend.
- Below higher time frame support/resistance.
USD/JPY has been retesting resistance and is sitting right inside the zone to start the week.
With EUR/USD also at resistance, surely one of these pairs are going to roll over here and give us an excellent setup from a risk management point of view.
EUR/JPY
Daily:
- Higher time frame bearish trend.
- Below higher time frame support/resistance.
If it's not USD/JPY rolling over at resistance, then there's a similar setup on the cross. The EUR/JPY resistance zone actually looks a little cleaner.
With EUR/USD and USD/JPY at resistance, could we get the mother of all rollovers in EUR/JPY? Price action is at least going to be interesting in this pair.
Economic Releases
Monday: JPY Bank Holiday CAD Bank Holiday USD Bank Holiday
Tuesday: AUD Monetary Policy Meeting Minutes GBP BOE Gov Carney Speaks CNY New Loans
Wednesday: NZD CPI q/q GBP CPI y/y CAD CPI m/m USD Core Retail Sales m/m USD Retail Sales m/m GBP BOE Gov Carney Speaks
Thursday: GBP BOE Gov Carney Speaks AUD Employment Change AUD Unemployment Rate GBP Retail Sales m/m USD Philly Fed Manufacturing Index USD Crude Oil Inventories
Friday: CNY GDP q/y
Return from Weekly Market Preview - Which Pair is Going to Roll Over First? to forexbrokr's Web3 Blog
