Weekly Trading Prep: Oct. 10 – 14, 2016

The NFP week may be over, but opportunity-spotting in forex is forever! Here are the setups and chart levels on the majors that I’m looking at this week.

Weekly Inflection Points to Watch

EUR/USD

GBP/USD

USD/JPY

USD/CHF

Open Price 1.1182 1.2400 103.29 0.9785
Last Week’s High 1.1245 1.2947 104.17 0.9840
Last Week’s Low 1.1104 1.1485 102.21 0.9697
Top Weekly ATR 1.1263 1.2602 104.55 0.9708
Bottom Weekly ATR 1.1101 1.2199 102.30 0.9708

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. Brexit-related headlines – As Forex Gump pointed out, part of the reason why GBP crashed last week was that there were no pound bulls willing to balance the scale against the bears. If we see more clues that a Brexit is gonna hurt the U.K.’s economy, then we’ll probably see more pound losses (and not the healthy kind).

2. FOMC meeting minutes – This week the Fed will print its last FOMC meeting minutes. If you recall, Janet Yellen and her gang chose not to raise their rates despite the hype and relatively better-than-expected data coming in. If the Fed turned out to be closer to a rate hike than we anticipated, then we might see gains for the dollar across the board.

3. Oil-related news – Word around the hood is that some major oil players *cough* Iran *cough* won’t be rubbing elbows with the others in the next informal/formal OPEC meetings. Will this mean that we won’t see a concrete action against the oil glut this year after all? I’ll keep an eye on oil-related headlines for their possible impact on overall risk sentiment!

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

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