Welcome to the Melonstrade Week Ahead Newsletter.
Greetings all, this week is incredibly important for the US Dollar with the FOMC on Wednesday.
We have called the direction for the US Dollar Basket successfully from the 2nd cycle higher to where it lies now. What is clear is we have made 3 district movements higher in price.
The Jury is out as to whether ti will continue to squeeze higher or not.
Dollar Basket - BUY
Notice how price has moved from Cycle 2 into Cycle 3.
In the second picture, notice how we are seeing currently only 2 pushes higher giving a massive clue as to potential further upside with the DXY.
EUR/CHF - BUY
EUR/CHF is IMO a generational BUYING opportunity purely based on seeing the Market Cycle completing on the way down (1,2,3). This trade has taken nearly 20 years to complete. It is primed to move higher over the next few years, and suggests that something cataclysmic will happen with CHF monetary policy.
As you can see below, the Pattern has played out in threes moves lower.
Notice the 3rd move lower in blue and the orange 1,2,3 count within this section.
This week we anticipate a move higher to complete 3 weeks of rise inline with the trend. (below);
AUD/USD - SELL
We can identify where we currently sit in the Market Cycle. We sit in the Second Cycle lower.
Within this Cycle we are seeing lower lows and lower highs. We are looking for an opportunity to take this pair lower to complete the Cycle.
USD/CAD - BUY
USDCAD is one of the prettiest Patterns. The polar opposite to AUD/USD. This also aligns with out observations on the USD, which we expect to appreciate in value.
USDCAD sits in the second Cycle higher, and this lets us know that we are only looking for BUY opportunities. Notice the Harmonic Pattern that created the entry within this cycle.
We are waiting for the Market Markets to give away their hand before taking a position here.
CAD/CHF - BUY
This alongside with CAD/CHF is one of the generational trades to potentially ris=de for the next couple of years.
On the HTF (High Time Frame) we can see that an AB=CD Pattern has completed which suggests buyers will return to the market for this pair.
EUR/GBP - BUY
A great setup visually. We dan clearly identify where price sits within the Market Cycle.
Price is currently positioned at the low of Cycle 2. We have also seen an AB=CD Pattern complete at the low of this Cycle 2. We expect higher prices.
EUR/AUD - BUY
Another favourite Pattern. Favourite purely based on the behaviour we can see in price. Behaviour is ordered and predictable. We must only remember to trade charts that are behaving correctly.
EUR/AUD is currently within the Second Cycle higher. We have seen a Harmonic Gartley Pattern lead us to the entry into the pair. We expect higher prices.
GOLD
Gold from a chart perspective looks higher, but it is contradicting our analysis on the US Dollar.
We see GOLD higher. We see it currently in the Second Cycle higher and within this Second Cycle we can see a smaller pattern of which we are leaving the first cycle of a potential 3.
I hope you enjoy this Newsletter,
If you have any questions please reach out to my email support@melonstrade.com.
Alternatively join the community on Telegram. https://t.me/+z5Bip972seZmM2Rk
Have a good week.
Thanks
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