The Week Ahead: War drums, employment data and the first full trading week!

With the tensions in the Middle East increasing from Trumps actions and tweets we are heading into a new market theme, I speak about understanding market themes plenty of times but if you never heard me explain this here it goes again:

As soon as one problem is settled, a new one arises, just like in our lives... North Korea was a big deal in early 2019, but in early 2020 it means little that a new rocket was launched in the sea of Japan, but it does not mean that it will not be a market theme again in the future...

That is one basic example, there are dozens just waiting to be triggered and if we can anticipate them we can make a lot of money and grow our wealth.

The current market theme for sentimental that is bigger than the rest is "whats next for the US and Iran" drama? Is it a relational from Iran? Are things just going to die down? these are other probabilities remain, but one will be a reality.

Anyhow, I did not want to go into this much right now but I will in a video or podcast soon! Now lets turn our attention to the charts we have prepared for the first trading day of the week!

GBPUSD 1H CHART: A DC support and a long trend line

We kick things off light... a 1H chart of GBPUSD which has a good potential of upside if the blue trendline is broken and if that happens I believe that a test of 1.31260 should be coming.

The current support is a rather strong one with strong and aggressive bounces to the upside which only means, if broken, aggressive selling could occur.

As every Sunday, wait and see!

(click on image to enlarge)

USDJPY 4H CHART: Gorgeous contraction leading to a key support! Pips anyone?

Here's a contraction we found in the New York trading session on Friday, a little risky trading the JPY after the Iran developments late last week but indications are indications... and the TP is really not that far.

This trade might already be gone by the time the market opens, but it holds a good educational lesson, as I think it has potential to reach TP before making further movement down?!

(click on image to enlarge)

USDCAD 4H CHART: A classic bearish contraction pattern

Personally, I am in this sell trade and it looks pretty solid... but just as the JPY it can be affected by the Iran/US threats and actions due to the CAD's correlation to the price of OIL.

The chart pattern is clear, a solid continuation pattern with 2x tests in 8 hours of the EMA and that is a good signal based on our trading strategy.

120% of the swing down is right at that "possible" support and that's what im targeting here!

(click on image to enlarge)

EURCHF 4H: Bullish contraction ready for take off or not yet?

Ok this one might not yet be 100% on the bullish breakout yet as there could be one more swing down, but there are NO RULES when it comes to charting... because every.... I REPEAT, every single pattern and trade we take are 100% unique!

We are at an important support, but there could be a little more down-side to 1.08100... I am on "wait and see then act" mode on this one for the time being.

*If we have a new low we need to edit TP's!

(click on image to enlarge)

CADJPY 4H - At support

Last but not least... this one is interesting and can provide some good pips! I will go over it in more details in the morning review tomorrow!

Till then, be safe and lets seize some pips!


Mon - Fri: 3am - 8pm GMT

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