So, how’s this for fun??  We have several weeks of completely garbage markets because of the US govt. shutdown……then they get it “resolved” and we get our normal first week’s news at the end of the month of October.  Happy Halloween!!

This week of news made for some rough seas.

As if that wasn’t enough, we now enter into a week where we finish with NFP (because they didn’t squeeze it in at the end of last week).

As usual, expect anything, ranging from stagnant markets until Friday, normal markets, insane volatility all week, OR any combination of those things.

We are certainly looking forward to next week, which should hopefully be the start of a brilliant 3 weeks to the end of the November.  Excited yet???  Don’t let the moves that happened towards the end of last week scare you, but don’t deny them either.  We may be looking at reversals on many pairs, but we haven’t gotten clear signs of that yet.  Stay nimble, stay “small” (don’t gun for the big trades right now), and most of all stay cautious and within your comfort zone (clearer heads seem to prevail there).

Euro/$:  Monthly candle seems a bit bearish but not all the way to finish October.  We have pulled back to 1.3485 which is the area I am most interested in to start this week.  Would very much prefer a long from this area if price reacts BUT I am not simply placing a forward order here.  A pullback all the way to 1.3400 may occur, but I feel where we are now is likely the “reaction zone”.  Explained in the video.

Gbp/$: Also a bearish candle to finish October, but the real “big picture” is that we are in a bit of a range between 1.5900-1.6225(50).  Our trades are to long at 1.5900, or short at 1.6225-1.6250 until the range is broken on either side, then we look to M2 breakout-pullback trade those areas.  Smaller timezones seem rather volatile on this pair, so if you do secure a winning trade, make sure you actively manage it to not give back the gain.

Aud/$: Seems to be pulling back to .9400 which of course gives us another opportunity to long from here.  Should give us a nice ride up to almost .9600 and possibly all the way back to .9750.  The monthly candle (October) closed above .9400 which is more validation that the uptrend is still intact.  Check the vid for more details.

Euro/Gbp: Our monthly candle that just closed yet again confirms our areas of s/r.  We may have witnessed a nice bottom weeks ago at around .8300 and we might be headed back to .8600, but we continue to bounce around from week to week.  No clear trend established here so we will continue to work the important areas of .8440, .8360, and .8600 as price seems to be meandering between those areas.  Check the video for more details.

$/Yen: Looking at the monthly situation, one gets a clear view that this pair is not bent on making big moves at the moment.  So we must adjust to the current conditions and look for smaller trades.  Market closed above 98.50 so we will look for reasons to long at this point to start the week, keeping in mind we want “point-to-point” trades from there to 99.50 or 97.50.  To the upside, 100.00 and 100.50 are important and below further is 97.00.  Until we see a really great reason on bigger timeframes to hold on to our trades longer, we should continue to try and trade between these areas, actively managing our trades as we go.

Euro/Yen: Still doesn’t look great, but at least it seems we have an area to work with.  We are back yet again at 132.50 and that’s where we should look to trade.  To the upside, 135.00 looms large overhead and to the downside, 130.80 is still support below 132.50.  Conservative approach is just to wait, but there are opportunities on this pair if you look at smaller timeframes and the areas highlighted above.

Aud Yen:  Although this pair certainly has been moving more than the other two Yens, it is still mired around the same areas we have worked for weeks now.  93.00 seems to be supporting price well, but a breakout below 92.50 and you can expect a fall all the way to 90.00.  I am still interested in longing from 93.60 if price can make the breakout again from this area.   Check the video for more info.

Usd/Cad: This pair continues to confuse on the longer timeframes, but it does seem to be swinging back up towards 1.0560.  Look to long from 1.0400, or if price breaks above 1.0435, then from that area instead.  1.0500 and 1.0560 loom above for potential shorts, but any break above 560 would definitely have me interested in a long from that point.

Eur/Cad:  The newest pair on the block, has two apparent options. The aggressive approach is to look for reasons to long from 1.4000 since we have a trendline and whole number there.  The conservative approach is to wait for a re-break of 1.4100 and look to M2 long from there.  Check out the video for coverage on this new pair.

New members please note: If I am looking to take a trade long, at for example 1.5000 , I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.

We are NOT a “tipping service” our aim is to teach you how to trade for yourself. For more up to the minute updates do not forget to drop by the forum

Hope you enjoy the analysis!! See you Wednesday for an update!! Best wishes and happy trading to all!!!

http://www.youtube.com/watch?v=x1lQCO_YDVw&feature=share&list=UUh9jKEbExtwL0MnwLBeyoyQ