Weekly Trading Prep: July 18 – 22, 2016

Are you ready to trade the major dollar pairs this week? Here are technical levels as well as some forex catalysts that you might want to keep your eyes on!

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.1050 1.3196 105.36 0.9823
Last Week’s High 1.1166 1.3842 106.34 0.9895
Last Week’s Low 1.1015 1.2851 100.54 0.9764
Top Weekly ATR 1.1152 1.3423 106.93 0.9906
Bottom Weekly ATR 1.0949 1.2969 103.80 0.9740

1-Hour Charts of the Majors

Purple Line: weekly open prices
Blue Line: weekly highs and lows
Red Line: top and bottom weekly ATRs
Blue MA: 100 SMA
Red MA: 200 SMA

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart


GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart


USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart


USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

3 Potential Catalysts:

1. ECB’s Policy Announcement – On Thursday the European Central Bank (ECB) will publish its policies for the month of July. Is it considering more easing post-Brexit? Remember that the EU is the other party in the Brexit divorce. How much has the issue, along with the latest terrorist attacks in the area and Italy’s bank crisis, affected the ECB’s stance on its policies? Many aren’t expecting fireworks from Mario Draghi, but watch out for potentially leading comments from the ECB head honcho!

2. U.K.’s Data Dump – Last week the BOE surprisingly kept its rates steady, mostly because it doesn’t have concrete economic data to work with yet. This week we’ll see the CPI, retail sales, manufacturing PMI, and employment data for the month of June. The month barely covers the Brexit vote held in the last week of the month, but the reports could still give us hints on just how much the BOE would need to stimulate the economy next month.

3. More Easing Speculations – Last week the yen lost pips across the board on speculations that a big stimulus package for Japan is in the works. Similarly, the pound shot up on the idea that the BOE would try to boost the economy by cutting its rates. This week we might hear more speeches from both Japanese and U.K. officials for updates on their plans. Watch your news feeds closely, k?

That’s it for this first update! Have you marked any potential trade on the majors yet? Don’t hesitate to share!

XOXO,

Huck

P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!

See also:

2014 HLHB Trend-Catcher Performance

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