Weekly Trading Prep: Aug. 29 – Sept. 2, 2016

Can you believe it’s almost September already? Here are potential inflection points on the forex majors in case you haven’t marked your charts for the NFP week ahead!

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.1177 1.3112 102.06 0.9785
Last Week’s High 1.1356 1.3280 101.96 0.9794
Last Week’s Low 1.1181 1.3035 99.95 0.9594
Top Weekly ATR 1.1271 1.3290 103.42 0.9871
Bottom Weekly ATR 1.1083 1.2934 100.70 0.9700

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. NFP week speculations – The Jackson Hole weekend has come and gone and now traders have more clues to back their rate hike speculations. Some still aren’t convinced though, and are waiting for the NFP report this Friday to seal their rate hike bets. If the report shows strong numbers, then we might see prolonged dollar uptrends. But if the report disappoints, then the dollar could lose some of the pips it has gained over the last two days.

2. China’s data and risk sentiment – On Thursday China is set to release its PMI reports. Markets are expecting slightly weaker figures from the previous month, but any surprise could send high-yielding currencies in one direction especially since there’s not much on the calendar this week. Make sure to keep an eye out for China’s manufacturing and non-manufacturing PMI releases!

3. End-of-summer volatility – Can you believe it’s almost September already?! It feels like we just started the year! Heck, I still haven’t gotten around to fulfilling some (okay, most) of my New Years Resolution!

Anyway, the end of the summer months usually brings traders back on their desks, which tends to cause ruckus on volatility. Make sure you watch potential inflection points closely and prepare for strong moves as our fellow traders go back into their trading zones!

That’s it for the pre-week trading prep this week! How about you? Are you looking at anything interesting for possible trade opportunities?

Huck's Signature

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