 Hi, my name is Leon Roe currency trader and trading coach at trading 180 comm and welcome to this week's applying demand forex technical Analysis if you're new welcome, and if you are returning welcome back I really hope that you do find my analysis on supply and demand zones useful and application in your own trading and Yeah, if you want to find out more there are some links in the description box below also for those regular guys that are you know Watch my weekly updates every Sunday Unfortunately, I'm not gonna be around next Sunday So I won't have a release next weekend. I don't have a release So I'll be having a release of the market analysis the following week But in the meantime, I'll try and make a video this week if you want to send in any questions regarding supply and demand You know leave them in the description box or you can email me at info at trading 180 comm and If it's worth making the video if it's a good question, and it's worth making a video over I'll make a video at some point this week before I go away. So you'll have something You know to watch for this for the coming week, but As we always do start off on the fundamentals And fundamentals are really what drives, you know, basically prices and sentiment And if you want to understand about fund fundamentals and sentiment then if you again go to the fundamental analysis Course description and in the description box below and click on the link and it'll take you to exactly how I analyze fundamental and risk Sentiment you also have a fundamental analysis spreadsheet, which will give you My opinion on what I think The Which way I'm pretty much trading when it comes to a currency and then I can basically look to Do my pair selection. So if I'm bullish on the dollar and I'm bearish on the yen Dollar yen is what I'm going to be, you know looking at demand zones and so on and so forth. So Yeah, check it out if you haven't already and if you have you know Fundamentals are something that you should really, you know, keep on top of and and study and it takes a while to, you know implement into your trading but keep doing it practice is the mother of all learning as they say repetition and Yeah, just let me know any feedback you have as well regarding the course. So Getting back to trading economics week ahead This week we have the FOMC minutes Which will be keenly watched alongside us durable goods orders existing home sales and flash market PMIs UK employment and wages Eurozone flash market PMIs Japan inflation Foreign trade and flash Nikai manufacturing PMI and Australian employment figures Investors will also react to US China trade talks. So Those are, you know, the the highlights for this week and definitely something to look out for when you are Making your trading decisions right before you press buy or press sell look at what's coming up in the week What it was potentially going to, you know, move prices, you know, high volatility you know news releases and You know pretty much Make your trading decisions based on that so Getting into the technicals we start off on the Dow Jones dollar index and the Dow Jones dollar index is a measure of The dollar strength against the four major currencies or three other major currencies, which is the euro the pound and the yen So we just use this keep an iron is to look for dollar strength And then go to the dollar crosses to look for by buying or trading of so buying or selling opportunities, right? So from last week Last week's analysis we had just broken through this supply zone, but I did keep it here I'm just in case it did, you know decide to fall back As you guys know, I'm bullish dollar anyway, and I happen for a number of years and Yeah, so let's get into What happened last week? So pretty much we end up coming up to this You know supply zone area right here As we you know continued with dollar strength and we're getting a bit of a pullback is that profit-taking is that reversal? We have no idea at the moment. So We're just looking at right now from a technical perspective It has come off this supply zone right here We could be heading, you know down into this near a demand zone, which I'm going to be drawing on a on a live chart so If we go to the charts, this is what we saw and then what we're living to do is now add demand right right here and So if we are looking at, you know a bit of a pullback within this area again We're just looking at price to come into a demand zone on the dollar index And then if it comes into a demand zone, let's say on a dollar yen You know dollar Swiss dollar CAD etc. And we see prices start to move higher Then we should see overall dollar strength and then we're trying to pick the weakest currency in order to trade against the Why would consider the strongest potential currency? If not, then we're looking at buying Here down here at the moment as there are no other demand zones that have been created If you are looking to take advantage of potential some short-term Dollar weakness depending on especially what happens with FOMC The FOMC statement this week if it is maybe a bit dovish Then we could see obviously prices start to you know fall away and even depending on how dovish it is Prices tend to you know, maybe fall through this Demand zone right so We've got a few options right now Again look for maybe some short trades if you are looking to get short on the dollar again on the dollar young dollar CAD You know, etc. If not then This area here is going to be the next area to look for some short trades My prices do come up here then look for you know short trades on the dollar crosses So bearing that in mind, let's move on now to the dollar yen And again from last week We did have some dollar strength right so that reflected obviously on the other dollar pairs Apart from New Zealand dollar New Zealand was quite strong this week, but we'll get to that in a sec But dollar yen we was pretty much, you know risk on A risk on the environment stock market was rallying as well this week pretty much and Yeah, we pretty much didn't hold at this supply zone so What we want to do is go to dollar yen and update the chart so You can delete that right there and then we can add a demand zone right here and then Where we at now pretty much we're just looking for again making your decision based off of you know Dollar strength for dollar weakness. Do you want to you know take advantage of potential dollar profit-taking? And if you are then profit-taking isn't necessarily the best Decision you know because we don't know how much you know supplies going to be in that area with supply and demand What we're looking for is understanding value. Why should you be buying the Japanese yen? Why is the Japanese yen a bargain at this price? Right or why is the dollar a bargain at any of these demand zones right and we determine that again through fundamental and sentiment analysis, but If you are just looking at purely the technicals and you are looking at a potential reversal then you know This is your chance to potentially get short looking to get long then it's going to be That's going to be your first area to try and get long second area We also have a bit of a An intraday Support and resistance probably within this area here It's not the clearest on the maybe on the daily time frame chart if we zoom down into the four hour Might be a bit clearer. Yeah, so you've got you know a bit of resistance resistance resistance But support resistance within this area this 109 Eight to 109 six area so if prices do come down to this area here on an intraday time frame And then you get some bullish price action and again look at the dollar index For confidence for overall dollar strength You may want to again start getting look to get potentially long here and again if that doesn't work out Then you just look for the same from this perspective here from that demand zone again from a selling perspective If this doesn't work out here then at the moment your next Supply zone on the daily time frame chart is going to be all the way up at this one 13 40 level so Those are pretty much the options for now and in fact I will There's a bit of a level I would say right here as well Have a smaller level you got some resistance and some support within that area of Demand and what basically support and resistance is is just past supply and demand zones that have been projected into the future and we use Support and resistance just as confluence within areas of demand because we know that other traders trade, you know Support and resistance and we're trading in an area of Supply and demand and demand is really an area of potential Value and other traders who trade technical patterns will be also be looking at that area to add to their positions or enter new positions So we've got net net some more demand orders than supply orders potentially Within this area from a value perspective and from a technical perspective And there are also some other confluences that I use like diagonal Support and resistance as well as dynamic support and resistance and again There's some links in the description box below That shows you that and that's to do with the supply and demand order equation, right? That's that video there but moving on to the dollar Swiss Again last week. This is the analysis that I put forth and We were even waiting for prices to you know come down to this area before of demand before looking to buy or Potentially up into this area of supply to sell we were in a bit of no man's land Again, you can see what happened. So right now come up into this area of supply and we're putting in You know a bit of a bearish candle again We don't know whether this is profit-taking or if this is an actual reversal At the moment probably catalyst is gonna be you know FOMC So, you know just be be aware of the upcoming news so let's go to the Dollar Swiss Frank Think I've dated before. Yeah, so Pretty much. This is a created a demand zone So we got higher highs higher lows and we know that higher highs and high lows are Potentially the strongest areas of supply and demand So we've got a bit of a demand zone here. So what we're looking at is if you're looking to Take advantage of you know dollar buying and again, you're looking at the immediate trend from you know, this low Higher highs higher lows and you're a trend trader Then this is gonna be the first area to look for any long trades and the next area is gonna be down here If you're looking to get short Probably now is or round now is gonna be the time to look for any short trades again on a lower time frame You might see some sort of double top triple top right within that area So but again always ask yourself the question of why you're buying a Swiss Frank and why the Swiss Frank is a Bargain at this area if you think it is then get short if not then you know look for Maybe a pullback into into demand Moving on to the dollar CAD The dollar CAD this week We were basically discussing that Prices would probably come up into this supply zone or near abouts and then look for potential short trade And if not, then you'll be looking for prices to come down into this demand zone look for a long train There's you know, we see prices barely touched. I don't think it did as it goes, but Yeah, it didn't touch it so Nearly nearly touched it, but then we've had a bit of a set off so If we're looking at what happened this week pretty much prices went sideways now go into the chart dollar CAD Again what we're looking at is You know prices to either come up to this supply zone before looking to get short or looking for prices To come down into this area of demand before looking to get long and again when you're Trading the Canadian dollar keep your eye on on oil WTI as WTI is Canada's main export and the value of the Canadian dollar tends to be colorate cut colorated correlated to the To the to oil And the price of oil so at the moment no real, you know, definite buy or sell trades at the moment They've prices have really come up into this area here. They're about all pretty much down into This demand zone depending on what pair you want to be buying or selling Moving on to the New Zealand dollar US dollar and last week Prices did come down into this demand zone where we also had a level of resistance support support resistance Decent set up to the long side if you were looking to buy the New Zealand dollar and the New Zealand dollar this week has Has gained a lot of strength and on the expectation That there wouldn't be a rate cut because there was apparently talks of a rate cut inflation has come in at Decent level and so I think rate cuts are off the table at the moment for the New Zealand Dollar and the New Zealand dollars really rallied in strength. I think it's been put in the strongest currency this week Why and you can see pretty much, you know strength with the New Zealand dollar now Go to the charts We are up coming up into an interesting area Right here, so If you believe again that this is definitely value for the US dollar Then you want to buy the US dollar then this area here is going to be the area anywhere around here The highs within this supply zone in this, you know further or higher level of supply Is looking for they'll be looking for sell trades if you're looking for a buy trade at the moment Then you'll be waiting really for a pullback into this level or if prices and make new highs, right so high lows and high highs All right, so what you're looking for is something like this Prices do come back make a negative candle and they make a positive candle Then you want to be a buyer is waiting for price to come back into this level of what would have been called Demand why called the month and then you're looking for a buy trade, right? So Those are pretty much your options This week again, I bring the catalyst for really price movement is going to be for the for the dollar at least is going to be FOMC Let me just Get rid of some of these arrows Now moving on to the pound dollar a pound dollar this week We ended up going a bit lower with Brexit going on and You know the the uncertainty and a closer we get to Brexit and potentially having a no-deal Brexit and the uncertainty and Parliament and the confusion You know, I really don't expect the pound to really kind of rally again Anything can change at any time. It could be a deal bro could you know tomorrow? Whatever? And the market could rally so but for now while there's a lot of uncertainty You can see where prices are pretty much drifted down. Is this a reversal? Who knows but in my opinion, it's probably just again some profit-taking at this area But we won't know until obviously The week, you know comes if you do want to be a buyer of the pound now is pretty much your opportunity Decent engulfing candle if you trade engulfing candles on the daily timeframe chart So let's go to the actual charts itself Let's update anything so Yeah, what you're looking for is probably maybe now a you know some sort of buy trade if you are Looking to buy into some potential dollar weakness or pound strength If you're looking at being a seller then Here's where we've got some supply zones. We've got one right here as well So we've got this area here of supply right on top of this area of demand not necessarily pretty but as per the rules, this is how we actually, you know, we'll draw the Supply zones the reason why is because we have lower highs and lower lows All right, and those of you that took taking the course. This is exactly, you know why we draw Zones where we do like lower highs lower lows. So on an entry-day timeframe chart We're looking at You know any kind of short trades within this area here. Let me just get rid of some of these arrows so what we'd be looking at is Potentially, you know a reversal anywhere around here Right or a fresher level would be up there on an entry-day timeframe if you again went down into the one hour This is what it would look like, etc. Right? so Four hour And then obviously the daily So we've got some supply. Just remember though where you are looking to To buy if you are looking to buy the dollar, right? The US dollar is if we take the the high to the low and we're looking at a retracement Right If this is a potential rain from that high to that low and you're waiting for a pullback The golden limer will represent fair value. You're buying, you know more below fair value Which is more of the expensive area if you're buying, you know buying a potential expensive area This is gonna be a bargain area at the highs. So you're in an expensive area overall from this high to this low So just you know Keep in mind and be aware where you are buying potentially if you are buying the US dollar if you're buying a British pound Obviously, then you'd be looking at this low to this high This being an absolute bargain for the pound this being an expensive area for the pound This being the pullback pullback into fair value, right? And then you can start to see where prices potentially Could go, you know to the upside Right, so this is fair value at this exchange rate You're looking at, you know potential moves to the upside if you're buying the pound, right against the against the dollar And let me just again get rid of some of these And that and this right, so Again, just be aware of where you're buying you don't really you know, you don't ever be buying it You know at highs or or selling at lows So just keep in mind where you are buying and where value actually is right on on a price chart So moving on to the euro dollar And euro dollar Last week we did, you know prices did were coming down into this area So we had one two three four five days, you know of of selling of supply Of self-pressure if you want to call it that And then this week we've had prices, you know pretty much Come down into this area again If you were looking to buy the question always ask is why are you buying a euro down here? If you're buying it based off of just a technical pattern Which a lot of people would have been buying this of other technical patterns support support support, but every other youtuber He does, you know Support and resistance would have been probably indicating this is an excellent place to buy If you don't understand about, you know, euro value then You know brexit Italy budget crisis This is this was not an area really to buy Wasn't the smartest move in the world even if prices would have went higher For me anyway, just the way that I you know trade and again from a supply-and-demand perspective We know from supply and demand is that the more a level is touched the weaker it becomes So you've had touched once twice three times four times You know, this wasn't again fantastic from a from a A nods perspective, you know traders who would have put their stop losses below that area there definitely would have been stopped out And that's not to say that prices can't go higher But we're trying to make the the smartest, you know the smartest place just because you see an area of Support and resistance or even demand you got to look beyond a technical price chart and understand why this is potential a potential bargain for You know at this exchange rate. Why are you buying the euro? Yeah over the dollar and for me personally, I'd rather buy the dollar over the euro So I'm waiting for pretty much a pullback. Let's go to the charts Waiting for a pullback of some point at some point Don't know how I'm gonna get re-enter this trade as I did exit probably around this area here from an entry up here I Was expecting some sort of profit taking or reversal To happen, but if we get maybe something like this We'll be make a bit higher highs and then we make a move lower What we're doing is what we're gonna wait for this area to look to get short or What we'll have to wait for is Potentially something like this where you see Where you see prices start to make new lows and then prices pull back into you know, this area here What would be what would be known as supply right here? So we've got pretty much two scenarios at the moment prices are you know chopping around and again? This is just my my opinion not financial advice If you do want to buy The euro then Definitely this would be you know the area to look to get long you've got a bit of a you know What we'd call a guess a doji type candle? I think a lot of traders will probably look to potentially get in and again if you look at it If you know we're looking at FOMC coming out and again if there is a Davis statement by the FOMC by the Federal Reserve Then that could be the catalyst that does push prices, you know a bit higher But does that necessarily mean you want to get you know long on this currency pair again? That's a question for you to answer So if I if I look into you know be buyers of the euro now is definitely the time you may want to you know Maybe enter on a daily or a lower time frame chart And see what you can see down there. So those are your options and again just Here's you're gonna be your nearest supply zone at the moment Euro yen Euro yen at the moment is come down to this demand zone here and then We have you know pretty much entering into just a sideways, you know movement between this supply zone This demand zone here to demand there bit supply there. Let's go then to the charts All right, I think that probably the yen will some with a risk off environment leading up to Brexit And also European elections, I think are coming up again a lot of Uncertainty in Europe at the moment. I think the yen should strengthen over the euro Again, but that would probably be more of a factor of a risk off environment if you know money starts Flowing into, you know other things like gold and government treasury bonds UST bonds as well that starts to you know go higher stock market starts to go lower Then look for probably some sort of Sell trade, you know at levels of supply But again if all is is well then the euro not faring much better to be fair than the Japanese yen You know is probably the buy trade, but you can really see it in price You can see that you know investors and traders, you know, they have no idea You know what you know the exchange rate as far as they're in agreement that you know prices between this one two five nine four And maybe this one two three level is where you know prices Should remain for now because the Japanese yen is quite weak from a fundamental perspective and the euro is quite weak From a fundamental perspective. So if you have two weak currencies, right? Going against each other, this is what will tend to happen the same way if you have two strong currencies competing against each other This is what tends to happen. What currency? Has an edge over the other the only edge I think the Japanese yen has over the euro is risk a risk off sentiment a safe haven play But fundamentally if we were risk if we were in a risk on environment the euro should Not much not by much, but should you know basically rise so That all being said Where are we at now? Again, I would probably say just if you prices come up to the supply zone So if you feel that, you know, the Japanese yen is really the The currency to buy and the euro would be around this area here I Probably wait for more of a clearer picture at the moment as it's really not that clear Regarding the fundamentals and the risk sentiment moving on to the Aussie dollar Aussie dollar and We did come down last week into this this demand zone here I think we did pierce through a little bit and then we ended up coming back up Right here. There's a bit of positive sentiment around the Australian dollar So looking at the actual chart I'm going to update this What I'm going to do is I'm going to put this demand zone around here Slightly here We've made a bit of higher highs higher lows there So you can see if I zoom in a bit higher highs higher lows right there so um You can also You know, basically drag it right there as well Now, um, if we are looking at being a buyer Then probably look for price to come really down into this lower end Of this demand zone going to get rid of this Area here. Again, this is what it would look like on a lower time frame. Let's say the four hour All right. So what you're looking for is probably Pull back into, you know, this this lower area here before looking to get long if you're looking to buy the Australian dollar And if you are looking to get short then This is going to be an area here now. I do like this This area This supply area for various reasons and Again, for those who have taken the course, you'll understand that this is a cpr a capture pain relief zone, right? In conjunction with supply and I'll be making a video for you guys About this, you know, this trade setup in a lot more detail in the members area But for the guys who are watching this on youtube, this Is going to be the first area to look for You know your sell trade If you're looking to buy the the US dollar So anywhere around here and then if that doesn't work out then, you know, basically This is going to be the area to look to get short From a long trade perspective At the moment, I'd probably say This is going to be the first area to potentially look for any kind of Long trades and then you've got a level right here as well Yeah, within this wide area of demand So those are your areas that you'd be looking for potential long trades Now moving on to the last currency pair, which is going to be the Aussie yen Aussie yen Loading bars so we saw last week and we did bounce off of this area of Demand right here again risk being on this week. So some positivity on the Australian dollar Let's go to Aussie yen So this is what we've seen and We're caught between really this high here the supply zone and this demand zone here So again, what we'll be looking for at the moment is just either sell trade there or buy trade Right here again, keep your eye on risk sentiment stock market gold Treasury bonds depending on which way they're going even the the vixx volatility index if that starts to you know, go higher then Usually that would mean That money would be flowing into the Japanese yen Or potentially flowing into the Japanese yen as well, right? But um Other than that, I think if we do get some sort of a positivity And risk on environment then you know, um, we could see prices break through this Supply zone right here and then pretty much end up around here fast first so we could see risk off And then that'd be your next trade to end up buying the uh, the Australian dollar. So, um That brings us to the end of this week's supply and demand technical analysis if you enjoyed it, please like subscribe And share with your fellow traders. Again, if you have any questions, uh, definitely leave them in the uh Description box below. I really do appreciate all of the uh, the kind comments and encouraging comments and feedback that I am receiving and I have been receiving lately on uh on my videos as well and um Again, if you do have any questions, just let me know and I will endeavor to get back to you. So, uh, have a great trading week and uh guys take care