A COUPLE OF PROJECTIONS FOR THIS WEEK:
EURUSD: After setting the HOW (High of the week) as expected, EURUSD appears to have given the signal for the Mid-Week Reversal. As of now, this pair is sitting about 220 pips from the high that was set on Tuesday last week. Look to see EURUSD begin the week in [Consolidation], pushing the [Stop Hunt] to the 50 EMA which will allow TDI to setup above the liquid market baseline (yellow) towards the top of the bands. After the stop hunt, we are looking for move to the short-side to begin the week. Keep in mind however that the market makers have been steadily pushing EURUSD higher and higher, slowly setting new highs during this long trend run. Even though the setup appears to tell us that they will be moving this pair short, they may push this pair long to begin the first day this week, in essense, re-testing the high that was set on Friday...then beginning with their objectives to move short. Overall, our bias for the week on this pair: SHORT
USDCAD: With USDCAD pinning the 800 EMA back on August 31st, it appears that this has setup for what we call a "Trend Reset" - which means that as this pair has been trending "down" or "short" for a long time....on occasion the market makers will give back some pips in the opposite direction of the general trend, usually pinning or working around an EMA, and once they have enough contracts they continue to push the pair in the same direction - basically "resetting" the trend run. With USDCAD we can see a "trend reset" on August 17th, pinning the 800 EMA and working another 300 pips short. Now we have another set of pins on the 800 EMA and price has also pushed "short", sitting about 260 pips from the 800 EMA. As this pair has crossed over all three EMA's, it is best interpreted that this pair is still going to push short to begin the week. Eventually at some point in the week we do expect it to bottom out and begin to move long, however expect to see USDCAD push up towards the 50 and 200 EMA's at the market open..giving the impression that they are going to move this pair long for the week. But we believe that once they hit this zone...this pair will continue moving short, setting a new low of the week. As such, our bias for this pair is SHORT.