 Welcome back folks. Dao Dao off 33 nasa got 18 S&Ps off 5 Let's go over to our man mr. Teddy cakes that as we do each and every Wednesday at faulty past the hour You can check out Teddy every trading day folks at his website, which is forex dash trading dash unlocked commas Forex dash trading dash unlocked comm Teddy cakes that what's happening brother? Good morning guys. How are you today boy Teddy? Well, we get some movement out here, man That that pounds is pick this head up the euro looks like it's picking its head up Yeah, we've got some bulls going on over in Europe in front of the the meetings that are going on tomorrow and Friday So and for your viewers, I don't know if they're aware of we have obviously everyone's aware of the Brexit situation It's going on but the European Council on Brexit is meeting tomorrow and Friday So we're probably not going to see very much action for the rest of today's session going into Friday in the Euro And the pound right now I would think okay, so this was the lead up to all the fun. Yeah Absolutely, absolutely now the euro and the pound of both been rallying very nicely If you look at the daily chart we had that buy signal a couple weeks ago and right where the market is right now It's pretty much into our target area from that initial buy signal from that low So right now I think we're in a really good situation where regardless of how the meeting comes out We'll probably see just the slight pullback in the euro US dollar a little Consolidation because you have it almost an upside down head and shoulders forming if you look at that current big low on the euro US dollar chart It's like the head for a head and shoulders forming up right now And then we have the pound US dollar which obviously has been very strong especially over the past couple weeks The weekly chart actually it's strong today. It's hovering below its highs and stuff But the last week it was an explosive week So we know that the range of the pound when it starts to move can get very extreme and it looks like it definitely They the lot of bulls are heading into this meeting. So we'll see what happens I think you're gonna see digestion for the next couple days I don't think there's gonna be much more of a swing trade left in it Well, you know, it's interesting is that they they seem to both be moving up I mean, you know together, which is kind of cool. Actually, you know what I mean I guess since the in a while this year, right? Yeah Yeah, you know, so it's like is it almost look like the power to go to a dollar and not the pound the euro I'm just like the year we go to a dollar at a certain point But hey, it almost look like the pound to on that trend man. Seriously. There's no end in sight You know, so we'll see a little bit of dollar weakness creeping in if you and today on as far as the currencies are going You have the pound US dollar the euro US dollar that are strong You have the US dollar yen right now. That's fledgling. It was lower earlier today Now it's kind of flat underneath hot new move highs that it's set yesterday You had the US dollar Swiss also that has fallen short of parity the last few sessions and is a little bit Right before we got on the air was lower. So I'm not sure where it's at right now So I think that the dollar index right now obviously is on a little bit of a pause But we might be starting to see a little bit of a turn where we might start to see the dollar index pull back And start to see a little bit more strength in these other currencies. Yes. Hey, what do you think about the yen? It looks like the yen. I mean, you know, it's coming into that down draft from what August 1st But if it right because buy that down draft man, that could basically get some juice, right? Right. Well, what's interesting is the recent highs that it set over the past few sessions Remember last week when we were talking we were talking about how those highs had gotten rejected and the market was actually a little sluggish Yes, all of a sudden it made this lower move low and it took out the highs for the past few weeks, right? It's a very positive signal But then also if you look at the trend the US dollar yen has been rallying basically for a couple months now I think we might be seeing it now if the dollar index starts to weaken We may see now this is a little bit of a toppy area for the US dollar yen and start to see a little bit of a retracement Back to lower levels. I think today's close is big If you look at how we haven't made a higher move high yet If the market settles a little bit lower like if it starts to look like where it was a few hours ago That's a short-term sell signal and especially if we get a close is lower today and another lower close tomorrow That would be that would set off a nice sell pattern that we probably would see the market trend lower for the next week Or so good because right now that thing you know Looks to me it doesn't look to me, but we know where it is I mean that bus this topside man that the gold market will get smoked. You know what I mean, so it's like yeah interesting Absolutely, absolutely. So I think that the bulls is as aggressive as they've been for the US dollar yen over the past week Especially I think this is an exhaustion gap. I think you're gonna start to see it fall apart, right? Is that why it was so what we're talking about folks the why by it was an extraordinary move on on the 1st of August Yeah, we went from 109 to 107, you know, which yeah, there's huge action everywhere on there, right? That's what bonds took off everything, but that's quite a bar on that yet. Yeah And remember we're done with the interest rate stuff right now for a little bit. Yeah, it's really concerned about central banks right now Right. Yeah pretty wild so the we're gonna be back to the European Union the Brexit the pound I guess say that the pound and they You're all gonna be basically the movers out here, right? Absolutely though I think they're gonna be movers come Friday unless there's probably next week because I don't think we're gonna get a lot of noise out Of this council meeting unless they start to really spark headlines, you know But I think the Swiss you could see a little swell off the yen Especially like I said if we get a negative close today now for your US dollar can of the traders that market has been wedging It's kind of stuck in the mid like the lower part of a dollar and a half range I wouldn't have very many much expectations for that market either. I think it's gonna Probably be a little bit positive to neutral over the next week or so but not much of a swing trade going there But yes after the next couple days, I think we'll start to see some action But I think it ranks traders are gonna be the ones that are gonna be making the money over the next 24 to 48 hours. Yeah, man, you know, we haven't had like I mean last week They there was some really fast movement there, but we haven't had like really fast movement the currency markets for a while, right? No, we haven't we had some nice trends Individual markets on a daily basis some have had some moves like the pound the pound has had aggressive rallies over to The past couple weeks when the other currencies were really quiet if you look at the rally from the euro US dollar versus the pound There's not much of a movement on the euro. It's gone up, but it's still basically really it's it's right now around the 110 area But 108 80 is what is just you know, it's a buck and a half away, you know But with the pound look at how it's moved in the past two weeks. It's taken out like five handles That's a big passive move in a basically a week actually of trading, right? You know what what does happen with the pound folks, okay? I mean this thing has got killed in the last two and a half years It's very unusual that the pound is this low. I mean in the context of 20 or 30 years It's very unusual the country exits the European Union. Yeah Yeah Interesting times we live in Well, you know what I think is gonna get interesting is after this meeting guys because We're right now. We're 16 days or was or 15 days away from the actual Brexit date and with the way it's looking right now the There's some pretty big issues that they're talking about as far as traveling You know like you're gonna be able to travel between the UK and the EU But you're not gonna be able to move to the UK after January one Yeah, it's gonna change a lot man Yeah, so we'll see it's gonna get interesting right guys. Oh, that's for sure Teddy, you have a great week safe week. And of course we look forward to speaking the next Wednesday Sounds great guys. Thank you. Thanks for the update teddy Stay right there folks. Tommy and I come my back