Weekly Trading Prep: Oct. 3 – 7, 2016

Another NFP week, another opportunity to make pips! If you haven’t gotten ready for this week’s trading, then you should check out the potential chart inflection points and headlines we need to pay attention to!

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.1230 1.2924 101.55 0.9717
Last Week’s High 1.1280 1.3058 101.85 0.9756
Last Week’s Low 1.1153 1.2916 100.09 0.9640
Top Weekly ATR 1.1312 1.3076 102.80 0.9799
Bottom Weekly ATR 1.1148 1.2773 100.30 0.9635

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-related headlines – In its last statement the Fed disappointed market players by keeping their rates steady. However, additions to the hawk camp, as well as other FOMC members’ hawkish speeches are keeping forex traders’ interest rate dreams alive. Signs of a strong labor market could boost the dollar, while misses in jobs numbers would support the Fed’s decision to sit on its hands for a month longer.

2. Oil price movements – Last week’s OPEC deal was a boon for oil traders, as they celebrated the first cooperation among its members after a long stretch. Will the optimism gain legs, or will the bulls realize that an agreement to plan restrictions still won’t do much for today’s oil supply situation?

3. Manufacturing reports – One look at forex calendars will tell you that most of the major economies are printing their manufacturing PMIs this week. They might not cause sustained moves on their domestic currencies on their own, but they could set the tone for risk-taking if market players see significant hits or misses in the reports.

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

These are some of our favorite trading books, and BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!