Hey folks,
News Friday saw UK Service PMI basically as expected, so no trade there. Because a lot of the analysis from last Friday's signal still holds true, I'm going to requote it below:
On EUR/USD and GBP/USD "Until we start setting some lower lows and breaking key support on either pair, it's best to keep playing the range on the 3 hour chart." New lows that would reinforce the idea there's a larger downtrend back in play are 1.6200 on GU and 1.3820 on EU.
"The big down move in stocks we were looking for was already clearly set up [Thursday] (I clearly called for a short on stocks in both text and video), and it sure came in a hurry. With that head and shoulders pattern on the S&P 500 more clearly formed, the big question is whether or not we break out through the neckline. Depending on how you draw it, that neckline is either at 893 (sloping trendline support from mid May), 888 (previous daily swing low), or 879 (daily lows from mid May). I'm really not sure which of these is the clear breakout level to watch since a case could be made for each, which is why I wanted to get short early closer to the top of the right shoulder. Because I think the odds of a break lower are quite strong, I would advocate a short on any decent bounce to 900-920 if and when we get one if you're not already in. As far as profit taking is concerned, I'd plan to take some profits around 850 and we'll see how things look when we get there for the rest.
In metals, silver just poked out below the key $13.45 support, and is holding just below it for now. I recommend either initiating a position trade short now, or waiting and doing so after a nice rally tops out. Watch the Thursday (7-02) video signal for more on silver and gold. "
For news Monday:
1000 US ISM Non-Manufacturing (46.0 expected) - This indicator won't cause a huge stir in the markets, but should still be worth trading if it hits a bigger deviation than it has recently.
If it comes out at 48 or higher, EUR/JPY should rally 40+ pips.
If it comes out at 44 or lower, EUR/JPY should sell off 40+ pips.
0030 (just after midnight EST Tuesday) AU Interest Rates (expected no change at 3%) - Expectations are unanimous, so any move will get a big reaction.
If they hike at all, AUD/USD will rally 70+ pips.
If they cut at all, AUD/USD will sell off 70+ pips.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
News Friday saw UK Service PMI basically as expected, so no trade there. Because a lot of the analysis from last Friday's signal still holds true, I'm going to requote it below:
On EUR/USD and GBP/USD "Until we start setting some lower lows and breaking key support on either pair, it's best to keep playing the range on the 3 hour chart." New lows that would reinforce the idea there's a larger downtrend back in play are 1.6200 on GU and 1.3820 on EU.
"The big down move in stocks we were looking for was already clearly set up [Thursday] (I clearly called for a short on stocks in both text and video), and it sure came in a hurry. With that head and shoulders pattern on the S&P 500 more clearly formed, the big question is whether or not we break out through the neckline. Depending on how you draw it, that neckline is either at 893 (sloping trendline support from mid May), 888 (previous daily swing low), or 879 (daily lows from mid May). I'm really not sure which of these is the clear breakout level to watch since a case could be made for each, which is why I wanted to get short early closer to the top of the right shoulder. Because I think the odds of a break lower are quite strong, I would advocate a short on any decent bounce to 900-920 if and when we get one if you're not already in. As far as profit taking is concerned, I'd plan to take some profits around 850 and we'll see how things look when we get there for the rest.
In metals, silver just poked out below the key $13.45 support, and is holding just below it for now. I recommend either initiating a position trade short now, or waiting and doing so after a nice rally tops out. Watch the Thursday (7-02) video signal for more on silver and gold. "
For news Monday:
1000 US ISM Non-Manufacturing (46.0 expected) - This indicator won't cause a huge stir in the markets, but should still be worth trading if it hits a bigger deviation than it has recently.
If it comes out at 48 or higher, EUR/JPY should rally 40+ pips.
If it comes out at 44 or lower, EUR/JPY should sell off 40+ pips.
0030 (just after midnight EST Tuesday) AU Interest Rates (expected no change at 3%) - Expectations are unanimous, so any move will get a big reaction.
If they hike at all, AUD/USD will rally 70+ pips.
If they cut at all, AUD/USD will sell off 70+ pips.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
