Welcome to this weeks edition of the 'Week Ahead’.
We have identified themes which have now been cemented with the SwissCentral Bank acting on interest rates for the Swiss Franc (CHF).
The Swiss Central Bank cut interest rates by 0.25% last week. We identified this in the cycles that there would likely be a trigger event to start the expected move in the months preceeding.
We expect to see the following pairs make high probability moves in the coming weeks.
The charts hopefully represent why this is the case.
Before we start, please see the Pattern that governs our projections.
This pattern is known as the Market Cycle. It is a universal psychological pattern that is based on human psychology and the tendencies around the number 3.
The consolidation zones are ultimately interruptions in the trend, you will ALWAYS see 2 CZ on a trend on all time frame. Each of the trends that connect the consolidation zones are a mini version of themselves, known as fractal (red lines).
Right, before I before I lose your attention lets move on.
Our clear expectations are for the EURAUD, GBPAUD & EURNZD to push for the third trend higher - This is nice as we can focus our attention on these pairs mainly.
EURNZD
Price is in the second market cycle higher atm.
The point of this zone is for market makers to accumulate both longs and shorts and to distribute those profits when they are ready.
’Them being ready’ to us means we are on the ‘look-out’ for Harmonic patterns to enter into the cycle with the big players.
This is what we see with EURNZD. Within this CZ we see a Harmonic Gartley BUY Pattern, which was our entry. We have also taken entries at the blue 1. We are waiting for price to pull back and give us a higher low for entry.
EURAUD
Like EURNZD we are in the second CZ which was formed by a Harmonic Gartley BUY pattern of which we entered.
Although no clean entry atm, we are watching for a Harmonic entry on a lower time frame. However I may take the entry presented which is a trade off the 50ema in CZ2 in-line with the Market Cycle.
GBP
AUD
Another setup showing us clarity directionally. We sit in the second CZ higher. We have seen a BOS of the internal structure, and seen hh, hl, hh, hl (the red 1,2). We are also around the 50ema which is also providing support.
KEEPING WITH THE THEME OF AUSSIE AND NZD WEAKNESS
AUDUSD
We see the flip side of the above mentioned pairs, and notice that AUDUSD is starting to show its hand. We are in the second zone of CZ. Within that zone Market makers have created a Gartley BUY pattern which is counter trend, so they have trapped buyers for sure. However we understand the intentions as we understand the context of where we ar win the Market cycle. We can see the beginnings of LL, LH within the CZ, we also notice LHs in particular. We entered on the Gartley SELL opportunity and expect much lower prices. In addition the MACRO economic numbers for inflation have been falling which could precede a rate cut. TOP TRADE
NZDUSD
Like above this is a beauty, with inflation falling, the MACRO is lining up with eh pattern for lower prices. This is fantastic.
We sit in the second CZ lower, and expect lower prices.We saw a Gartley BUY pattern here which was counter trend and we also notice the lower highs. This is another that fits with eh narrative.
USDCAD
This has for a long time been on of my favourite pairs. The pattern is so clean!! This is clear for a third trend higher. However the SKILL isn’t in spotting the pattern so much, it’s entering into the pattern. You can still be right directionally but get stopped out when trying to enter….
We sit in CZ2 Price currently sits below the previous LH and we have seen one attempted close above. We need to wait for this to show us a sign.
Do you notice the general theme of how these trades are interconnected.
Thanks for reading!! Trade Safe
Thanks
Melonstrade
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