 Let's jump over to our man Teddy cakes that we talked to Teddy every Wednesday folks at 40 past the hour You can reach Teddy every trading day at his website for x dash trading dash unlock calm Teddy cakes that good morning Good morning, Tommy. We got a lot to talk about there's some great trends going on in the currency markets All right, man. Where do we want to kick things off Teddy? Well, why don't we start with Europe and we'll work our way around the world and I'm gonna explain how you can trade the Divergence that's going on with the major crosses right now and actually ride these trends So we'll start with Europe and Euro US dollar. I'm along it I see there's nothing but weakness going on with the EU the same with the US dollar Swiss I'm long that because the Swiss also is gonna be under pressure I don't see that ending for anytime soon, especially what's going on with the interest rate environment We have the Treasury bonds that in the past four weeks have dropped 15 handles making newer move lows today So US dollar strength is definitely hurting those currencies really really bad Especially because of the Ukrainian Russian conflict the pound US dollar. However, that's the divergence I'm long that one because between oil and the interest rate thing. It's not as heavy on that one plus it Because of Brexit remember we talked about that for two years And if anyone wanted to know what the implications of that would be now you can see their sovereignty how that's actually helping them It's holding up their currency. It's helping their economy and they're not taking the blunt of this of everything That's going on with the Ukraine and Russia. Okay, so in the dollar index. That's why you have a lot of it right now It looks like it's kind of basing, you know, you have this flirting with resistance flirting with support That's because the euro is the biggest component. That's what's drag That's the where the strength is coming in in the dollar index But then you have the pound that actually is kind of going is going the other way obviously So that's restricting the dollar index for from upward movement. Okay And now we're going to bounce around to Asia and see how this is why the dollar index is becoming really hard to use as an Indicator and you really have to watch the trends of what these individual currency crosses are doing instead. Okay, so US dollar yen We know we've been talking about that for a long time. I know you guys love it because of how it impacts gold That is still a bull. We talked last week about how the Bank of Japan has a 130 price target to support their currency We had a buy signal going on there a couple days back I'm long the currency again looking for new move highs now This is where you can really play the divergence in the markets So in the Asian zone the Australian dollar is a bull that market at bottomed out a few months ago Because of the rising commodity prices and demand for them. It's really strengthening their currency The interest rate factor is just slowing the rally for the Australian dollar so now the great play now is the Aussie yen because The Aussie is strong versus the dollar and it's in a bull trend the US dollar yen isn't a bearish trend So that makes Aussie yen a bull and it's flirting with new highs I think you're until the yen hits US dollar 130 mark. You're going to see that trend continue It's a great rally to come to chase into and look and look for newer move highs I think that the velocity of that move is also going to give you a lot of Reward compared to your risk, especially if you're risking the last swing lows And the same is for the pound yen also because since the pound is is at least relatively stable versus a dollar and not a bear And the and the GN is collapsing versus the dollar the pound yen trade is also a really good bull So that's my little walk around the currencies and now I'll give you the question now No, that's great, man. I was just letting you roll with it It is pretty amazing and it makes sense you lay it out when you got strength on one You got weakness on another you pair those and of course it's going to accelerate things When you're looking at these pairings Teddy for people not familiar with forex is I'm not familiar You know, I really don't trade too much forex really at all But of course, it's important for how our markets trade but when you're trading these Are you constantly looking for these types of setups where you're you're trying to find maybe the weakest versus the strongest? You know as in are you trying to look at like a pound yen or a pound or an Aussie yen versus? Kind of we're so used to it and you make the great points You know tell me what the dollar index is doing right? But it goes so much deeper than that are you trading the euro dollar you train the pound dollar But as a forex trader do you focus on these types of pairings trying to find the weakest and the strongest? It would make sense, but I don't want to say there are these liquids. I know the forex markets amazingly liquid But what do you go through when you look at something as trading like the euro dollar? Which is just you know one of the marquee pairings out there versus something like a Aussie yen or something like that? Sure, yes, great question. And you know what the answer is really simple It is exactly that I do look for the trends in the other crosses because that helps no matter What I you've heard me say it before that the best indicator of the market is the markets themselves because that's in real time So just like how I laid out those trades for the end trade, you know We're with the dollar versus the pound and also the Aussie because of those trends That's how I put myself in those other crosses. It's a triangle So you know that we're when you have one broad-based trend that you can count on like we know that the US dollar yen Is obviously in a bull market Higher your eyes higher move loads has been going that way for months, you know Yeah, so and then you know now also that for instance like the Australian dollar that bottom Versus the dollar already months ago, so that was a bear and no matter what you can't say it's a bear anymore It's because it's in a bull for months So writing those once you have that at least intermediate and short-term trends that are confirmed higher move highs higher move Lowes then you look for and that's why I said we had spy signals in those currencies So for instance last Friday and last Thursday you had a buy signal in the US dollar yen So that means we're looking to go back up and check challenge resistance We also had a buy signal in the Australian dollar So that means that's going stronger versus the dollar so that means it would overtake the yen You know so it gives you and then also in those crosses you had a buy signal simultaneously So when all three of those have Signals that go off then it's that's that's like the golden moment where you're like okay The big money has all turned when it comes to that what that quadrant because remember there's other crosses like there's Euro Swiss there's Euro yen, there's Euro pound and all these other ones have the same differences as well So where you might see a consolidation say in the US dollar sector in one of them and only trending in the other Those other ones will be trending, you know, so there's always so there's always a move somewhere There's always a bull market somewhere. There's always a bear market somewhere, you know So that is exactly how I do look for those trades, you know At least to get me in the frame of mind of am I looking to be a buyer or a seller? Which is the right side of the market to be on it makes sense because you basically got two sides of the equation in terms of a pairing And yeah, why not have both trends on your side in that pairing? Back to the dollar yen real quick Teddy because I know we got a bunch of traders out there You gave us some great insight last week talking about the Bank of Japan You referenced it again saying they're kind of drawn the line the sand so you're a bull We got it at 123 86 where do you start to get a little hesitant if you are looking for an upward move? Since you have the Bank of Japan over there talking about maybe capping that at 130 I would say that if you're riding the long you don't want to try and pick a top That's for sure and never try and pick up top or a bottom I'm looking to start taking profits around 127 half to 128 half and then see if it can get to 130 But I'm laying off the position because I don't see it accelerating if it goes above 130 I see it being a radical spike where if you don't get out right away You're gonna be all of a sudden wondering oh now I got stopped out and I should have made you know At least a couple of dollars off of it sure and we got 30 seconds Teddy. We got crude trading at 101 23 what's your take on crude where we go? I think we're gonna be chopping around between 100 and 115 for the next couple of weeks Sounds good man. I don't think we appreciate the move yet. That's a great insights man I appreciate you walking us around all those pairings. I know the listeners appreciate it as well and Boy everything every week Teddy. We got a whole new market by the time I talk to you We'll talk to you next Wednesday, man. Take care Tommy. Have a great day Teddy