I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Releases
There's a bunch of economic releases coming out tomorrow:
- Bank of Japan meeting minutes
- German IFO Survey
- Bank of England meeting minutes
- UK GDP
- US Existing Home Sales
While all of these will move the markets somewhat, I think the biggest one will be the US existing home sales report. If you remember what I wrote in my Dollah 06 report, US consumers have basically been using their homes as ATM machines, borrowing cash to buy lots of stuff.This shopping spree has been fueling their strong economy. Any weakness in housing data could send the dollar lower since that would mean the ATM machines (home equity) are starting to run out of money. And that's means having less money to buy stuff. Bummer dude.
EUR/USD
4 Hour Chart
Ahhh, just like I predicted. I said this pair would fall and try to re-enter its channel but would find support at the channel boundary. Right now, this pair is in consolidation. The only trade I see is if it's able to close above its most recent high, which would coincidentally also be above its 76.4% Fib line. I would buy some and target the 100% Fib line. My stop loss would be below the 61.8% Fib line.
GBP/USD
Daily Chart
Look how this pair bumped its head on its purple 200 SMA. That's short-term resistance for now. It looks like this pair wants to fall back down. Its downside is limited right now at its 50% Fib line. If the pair is able to close below its pink 50 EMA and 38.2% Fib line, I'd sell this pair and target its next Fib line. My stop loss would be placed above its blue 100 SMA.
4 Hour Chart
If this pair does fall, I've marked its next support areas in purple. I'm looking for a bounce if it touches its 38.2% Fib line though.I will buy this pair if it closes above its 61.8% Fib line. I will take profit either at the 76.4% Fib line or the 100% Fib line depending on how greedy I'm feeling. My stop loss will be behind the 50% Fib line.
USD/JPY
Daily Chart
This is how the chart looks at 11:46 pm EST. It seems to have found resistance at its 50% Fib line. What will it do next? Who knows. But I will be prepared if it goes either direction. I'm going to buy if it closes above its pink 50 EMA and target its swing retracement high (marked in green). My stop loss will be placed behind the blue 100 SMA. I'm going to sell if it closes below its 76.5% Fib line and target its purple 200 SMA. My stop loss will be placed behind the 61.8% Fib line.
4 Hour Chart
Hmm, looks like it's back in its previous sideways channel. If this pair closes above its blue 100 SMA, I'm going to buy and target the top of channel which is the black horizontal line. My stop loss will be placed behind the pink 50 EMA.Once I have 20 pips profit, I will move my stop to breakeven. I will continue to trail my stop by 20 pips grabbing more pips as I go playah.I will take a close look once it reaches its resistance target and decided whether to exit the trade completely. My thinking is if it's able to close above the black horizontal line, it will rise up to its purple 200 SMA. Alright, that's it for tonight. I've got to run. The Australian Open match featuring Martina Hingis is starting soon, and I'm rooting for her to take the trophy on first attempt back. Chao!
